The Prudential, along with the DSS, has produced the UK's first consolidated pensions statement for ...
The Prudential, along with the DSS, has produced the UK's first consolidated pensions statement for a pension scheme member, showing estimate incomes for both private and state pension provision.
The consolidated statement, the result of a pilot project between the DSS and the insurer, is part of the Government's goal to see the average UK pension scheme member receive yearly reports which take into account the individual's current pension arrangements and combined with State benefits, show an estimated income upon retirement.
The aim is to show pension holders the gap they may need to fill in pension provision if they wish to achieve a comfortable retirement as well as provide scheme members with clearer information on their savings.
Alistair Darling, social security secretary, said: "The new pension statement will set out in black and white exactly how much someone will get when they retire. They will see how much pension they have built up and, crucially, how much more they can get if they save more.
"Individual pension statements, giving simple, clear and understandable information, will play a key role in reminding people of the importance of saving for retirement."
There is some doubt over whether the combined statements will be a reality for all pension holders by the Government's target date of 2005.
The prototype statement is just an even break down between the Prudential pension and the state pension. Yet many scheme members have several different pensions through several different product providers. For example they may have a spouse's pension, an occupational scheme and AVCs.
This may become even more complicated when stakeholder is introduced due to the concurrency ability it brings to money purchase schemes.
Steven Cameron, pensions development manager at Scottish Equitable, said: "We have always held the view that a consolidated statement would be a powerful tool but it is difficult to produce.
"There is still a long way to go before anyone will be able to produce this for the average person who has less than straightforward pension holdings."
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