It's all very well getting an annual statement showing what you might get back from your pension when you retire, but what will it be worth in today's money? New regulations are about to be launched telling you what you want to know - how much you might get back at retirement in real terms.
Planning for retirement will become much easier for everyone. For example, if you earn £15,000 now and want to retire on a pension equivalent to half your salary, planning your pension payments to achieve your £7,500 pension should become easier. The only problem is that savers may get a shock, realising that their pensions are really worth a lot less than they thought.
The upside is that the need to save for retirement becomes more apparent when you know what your pension could be paying you at retirement.
The Department of Work and Pensions and also the Institute of Actuaries have brought about these new illustrations methods.
If you would like us to explain what your pension statement really means contact us today.
For more on pensions and retirement visit the Stakeholder Cafe.com or Pensions Adviser.com .