The Department for Work and Pensions has opened consultation on simpler annual benefit statements today.
Lizzy Holliday, Head of DC, Master Trusts and Lifetime Savings at the Pensions and Lifetime Savings Association, commented:
“Simpler annual benefit statements, along with the Pensions Dashboard and the PLSA’s new Retirement Living Standards, are a great example of good practice in providing savers with clear and concise information that helps them understand their pension.
“Pension schemes are enthusiastic about providing simpler and more consistent messages in their communications with members. An important principle is that they should be free to tailor their messages for their own member base as well as innovate the means of communication as technology advances. The simpler annual statement guidelines must necessarily balance the need for flexibility to allow for this and the need for descriptors that ensure savers get consistent information from scheme to scheme. We therefore welcome exploration of the descriptors we developed and look forward to continuing our work with the industry and the Department for Work and Pensions in developing best practice guidance.”