Joanne Segars, Chief Executive of the National Association of Pension Funds, said:
“People often struggle to plan their retirement, and these new rates should offer a more helpful and realistic guide.
“We are in a low growth environment and have been for some time. It is pointless letting people hope for high returns that might never materialise. This is a reality check.
“The revised rates are still estimates and are not a promise of what the pension will look like. The best way for people to manage that uncertainty is to give their savings a regular MOT to see how they are faring.
“The UK is not saving enough for its old age, so it is important to help people see how much they need to salt away. A reformed simpler, flat-rate state pension will also enable people to make stronger retirement plans.”
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]