Pensions - Articles - Aegon comment on closure of Combined Pension Statement

 “The concept of the Combined Pension service was well intentioned but ahead of its time. Allowing individuals to regularly see their private and state pensions side by side gives them a very clear picture of what their future retirement income might look like. But in practice, the significant practical challenges of combining pensions within a paper based system, meant few employers offered it.

  

 “The state pension is a significant proportion of many people’s total pension, so it’s vital they have a clear and early indication of how much to expect from it. Having this to hand allows people to factor it into their private pension saving and plan ahead for the retirement income they aspire to.

  

 “The move to the new single state pension of around £140 per week from next April doesn’t change this – if anything, it becomes more important that individuals have an accurate prediction as the majority will not be entitled to the full amount and many may be sorely disappointed if they only realise this when they reach state pension age.

  

 “As we move away from paper-based pension statements to a digital world, with the Government’s participation, it should be easier for pension providers and employers to offer scheme members online access not just to projections of private pensions but also to information on state pension entitlements. This could be advanced as part of the ‘pensions dashboard’ idea which aims to offer individuals digital access to information on all of their pension entitlements, in one place.

  

 ”Today’s digital age is a great opportunity to turn the ambitions of the Combined Pension Statement into a reality.”