Pensions - Articles - Increasing private pension income

 A new report published today by the Pensions Policy Institute (PPI) and sponsored by the National Association of Pension Funds (NAPF), highlights the impact that a range of different choices made by individuals and employers can have on future levels of private pension income.

 Commenting on the research findings, Niki Cleal, PPI Director, said

 "Of the choices and factors considered in this research, increasing the level of pension contributions being paid into the private pension increased future private pension income the most significantly. For example, a median earning man who started saving from age 30 whose pension contributions increased from a combined 8% of band earnings to a combined 12% of band earnings could expect his private pension income to increase by 50% under reasonable assumptions."

 She continued:

 "Decisions about when to retire are also significant in determining the final level of private pension income. A median earning woman who decided to delay her retirement by two years after State Pension Age could increase her private pension income by around 20%."

 "While decisions to pay more into a pension or to delay retirement clearly involve sacrifices on the part of the individual, there are other options that individuals can consider to boost their private pension income which may not require the same level of self-sacrifice. For example, a median earning man who shops around for his annuity and receives the best available annuity rate rather than an average annuity rate could boost his private pension income by 5%."