The Department of Work and Pensions (DWP) has announced that annual pension statements for work place pensions will have to be condensed to a maximum two pages. DWP will draft regulations to mandate for simpler annual statements for defined contribution (DC) schemes used by employers. A DC pension scheme provides a retirement income that is based on the amount of money paid in and investment growth of this money.
Yvonne Braun, Director of Long-Term Savings and Protection at the Association of British Insurers said:
"Simplicity and ease are important when communicating pensions information, which is why pension providers keep innovating for customers, both digitally and in paper communications.
“We look forward to seeing the detailed proposals. It is important that the changes are consistent across regulatory regimes, future-proof, in particular in terms of joining up with pensions dashboards, and that they have a realistic implementation timeline.”