This week, as part of a consultation the Government has drafted rules to make it mandatory for providers to issue savers simpler pension statements for certain defined contribution pension schemes which are used as part of auto-enrolment.
The Government is initially only focusing on auto-enrolment savings and the changes will come into effect in April 2022.
The Government has said they will look at introducing the same simpler pension statements across all pension schemes in the future.
The proposed new 2-page statement will allow savers to see:
Guy Opperman Pensions Minister said: “Simpler statements will set a new standard for pension companies to communicate with their members, allowing them to clearly see and understand what is going on with their hard earned money and plan for their future. Back in 2019 the Government first consulted on how annual workplace benefit statements could be reformed”.
Plans were abandoned on its response in October 2020 to make pension providers include costs and charges but providers are required to signpost members to information on charges.
The latest paper to reduce the volume and complexity of information for member on their statements has been welcomed by the pensions industry.
Anything that makes people more aware of their pension provision and what the future holds is never a bad thing.