Pensions Minister Guy Opperman recently launched a simpler annual statement at the Pensions and Lifetime Savings Association (PLSA) Annual Conference.
The simpler annual pension statement has been produced by former PLSA chair Ruston Smith, in his capacity as an adviser to the government on its review of automatic enrolment. Input was also received from the pensions industry - including the PLSA.
The aim of the statement is to help pension schemes and providers give savers just the key information they need, presented in plain English and with more consistency.
Commenting on the statement, Nigel Peaple, PLSA director of policy and research, said:
“The simpler annual statement provides a refreshingly clear way of helping people better understand their future finances. Currently, some pension annual statements are far too lengthy and complicated, and we know from our own research that half of people don’t understand them.
“The simpler annual statement, together with the pensions dashboard and the retirement income targets we are developing, will help savers have a much clearer idea of what they have saved for retirement and whether they are on track to live the lifestyle they want. We will continue to work with the industry to improve pensions communications and engagement and help more people get a better income in retirement.”
The simpler annual pension statement can be downloaded here.