Steven Cameron, Pensions Director at Aegon: “We welcome the Government’s confirmation that it will be advancing the roll-out of simpler annual benefit statements, using a common template, to members of auto-enrolment workplace pension schemes. These will complement pension dashboards and initiatives being taken by individual providers to create a step change in member engagement. Individuals need both the encouragement and the means to check they are on track for the retirement they aspire to.
“To support the Government’s preference for a ‘statement season’, it’s even more important that schemes and providers advance digital statements. A digital approach also allows individuals who want more information, such as on charges, to ‘click through’, without overloading the 2 page statements. While charge levels are important, individual members in workplace pensions can’t influence these, which is where Independent Governance Committees and Trustee Boards have a key role to play in challenging value for money.”
Darren Philp, director of policy at Smart Pension, comments: "This is good news and is a great step forward in simplifying pension communications. We've already adopted the simplified statement at Smart and we applaud the Minister's ambitions to extend this to all auto enrolment schemes. Linking to information on costs and charges is also a welcome step forward.
"We are also glad the DWP has parked the idea of the orange envelope. While this idea has much merit, more and more people are going digital with their statement, so we should always think digital first in communicating and engaging people with their pensions. The pensions dashboard and the technology underlying that will provide a great opportunity to change wholesale the way we communicate pensions."
Governments Response to workplace Pensions Simpler Annual Benefit Statements
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