25 February 2004 - Forecasts of future pensions hit the 1 million mark
The one millionth Combined Pension Forecast was issued this week, and they are delivering a wake-up call to people about their future income in retirement, Pensions Minister Malcolm Wicks said today.
The forecasts are issued by the Department for Work and Pensions, in partnership with employers and pension providers, and give people an individually tailored picture of their future pension prospects. Pension scheme members receive a single statement setting out their state pension and private pension, with a forecast of what their income will be when they retire.
Mr Wicks said:
“People are living longer than ever before, so the idea of a ‘pension health check-up’ is increasingly important.
“People pay a great deal of attention when a doctor reports on the state of their health, and the same should be true when they are informed about the state of their pension. As many people will have retirements lasting twenty or more years, it is vital they have accessible tools at their disposal to make the right decisions about their future.”
Combined Pension Forecasts are free to employers and pension providers, and simple to administer. The Government aims to reach over 6 million people by the end of 2005/06.
The millionth Combined Pension Forecast will be issued to an employee at John Menzies Plc. John Liddle, Senior Pensions Administrator at Menzies, said:
“We introduced Combined Pension Forecasts for the first time last year as we felt they would give our pension scheme members a much clearer idea of what to expect at retirement.
“We are committed to providing our staff with clear and easy to understand information, and feel that the Combined Pension Forecast allows members to take more control of their future.”
Malcolm Wicks said the forecasts – which form part of the Government’s Informed Choice agenda announced on 3rd February – are crucial in improving the information that people get, enabling them to make better decisions about their retirement provision.
“Over one million people have now seen forecasts of both their state pension and private pension together in a single statement. This kind of personalised information helps people see what income they can expect in the years to come.
“It may even come as quite a shock, but if it means people take saving for their retirement more seriously, that can only be a good thing.”
Employers and pension providers can get more information on issuing combined pension forecasts at www.thepensionservice.gov.uk/pensionforecast, by calling 0870 010 1684, or emailing cpf-cam-team@thepensionservice.gsi.gov.uk.
Notes for editors
- Combined Pension Forecasts are one initiative in a package of measures announced recently to put people in control of their retirement planning. The Government’s paper ‘Simplicity, security and choice: Informed choices for working and saving’ set out plans including an online retirement planner, and a proposal to automatically enrol new employees in their company pension scheme. The paper included a commitment to work in partnership with employers to deliver 3 million Combined Pension Forecasts by 2005/06.
http://www.dwp.gov.uk/publications/dwp/2004/inf-choice/index.asp - Informed Choice is one of the key elements of the Government’s overall pensions strategy as set out in the 2002 Pensions Green Paper – Simplicity, security and choice: Working and saving for retirement – which has since been developed in extensive consultation. The strategy also involves various other plans where developments are already in train:
- Proposals for radical simplification of tax rules, (replacing 8 tax regimes with a single system)
- Measures to open up new options to extend working lives
- The Pensions Bill was published on 12th February 2004. It lays out plans to protect members of pension schemes and make it easier for companies to run schemes. The full Bill can be read at: http://www.publications.parliament.uk/pa/cm200304/cmbills/057/2004057.htm
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