Simplified information planned to help savers understand pensions

New government plans are underway to offer a clearer view of pension pots for savers in 2022, through the introduction of easier-to-grasp annual statements.

New regulations will see the government insist that pension schemes issue those they serve with two-page-long documents that highlight key details to savers in simpler terms. This will include a saver’s work pension pot and a dedicated forecast of the amount they will receive on reaching retirement.

People making plans for the future and preparing for retirement can rely on financial advisors in Shropshire, Chester, and other parts of the country to ensure they have adequate provisions in place for later life.

The initiative underlines the government’s continuing commitment to urge savers to grow their personal pension pots by making sure that they can get hold of vital financial information in an easy-to-follow format.

Guy Opperman, Minister for Pensions, explained:

“It’s clear the status quo is not working, with savers left puzzled by the complex, sprawling, jargon-filled statements commonly used by the pensions industry. Simpler statements will set a new standard for how pension companies communicate with their members.”

Following consultation, the newly proposed alterations are expected to be in force from April next year. The proposed changes are designed to expand on plans in position for a pension dashboard, which is a new innovation created to empower savers to monitor their pension data, including State Pension, from any digital device at a time and place convenient to them.

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