Pensions - Articles - ACA calls for standardisation of benefits statements

 In order to successfully achieve the twin ambition of consistency and simplicity, the ACA believes that full legislative standardisation of annual benefit statements would be required. To the extent any guidelines and/or principles are subject to interpretation, there is the risk that consistency is not achieved. Ultimately, we are supportive of change that reduces the degree of confusion and apathy in pensions and empowers members to take control of their savings for retirement. For the full response click here.

 With Pension Freedoms, we believe that this is an opportunity to consider the relevance of the information that is presented to members through the annual benefit statements, as this is also a driver to better engagement. As such, consideration should be given to how different members are likely to use their savings at retirement and illustrations developed accordingly.

 The combination of a standardised simple benefit statement with a dashboard that shows multiple pension policies in one place will help millions of people view their pensions savings in a clear light for the first time.

 “We are also strongly in favour of this communication delivering more value to members by focusing on what members really need to know and providing them with the tools to enable them to take action to improve their retirement outcomes,” commented Hugh Nolan, ACA DC Committee Chair.