Government has announced ‘convoluted pension statements are set to be a thing of the past as Pensions Minister Guy Opperman unveils plans for annual pension statements.
The DWP claim the move will build on the ‘Automatic Enrolment’ of pensions by improving understanding people have of their pensions.
The new two-page statements will highlight key information such as the size of the saver’s pension pot and a forecast of their pension savings and payouts.
The DWP proposals will require statements to be created in a way that ensures focuses us drawn to the key information:
- How much money is in your pension pot?
- How much money you could have when you retire?
- How to grow your pension.
Minister for Pensions and Financial Inclusion, Guy Opperman said:
“For too long pensions have been shrouded in complexity and technical jargon, limiting people’s understanding of their savings and hampering their retirement planning.
Simple statements will usher in a new standard for how schemes communicate with their members – vastly improving people’s understanding and engagement with their pensions.
With more people saving for their retirement than ever before thanks to Automatic Enrolment, it’s vital they can understand what’s going on with their hard-earned money and plan for their future“