Scams Pension freedom gives many more people ready access to what are in many cases are large pension pots. This increases the potential for scamming. The government and regulators have rightly focused on consumer awareness in mitigating this risk. However, the Committee think they could do more and recommend greater anti- scam publicity and stricter reporting requirements for pension providers. Pension Wise and a pensions dashboard Despite the dearth of Pension Wise statistics, it is apparent that take-up of its services has been lower than many anticipated. The Committee recommend stronger signposting by pension providers and also recommend Pension Wise gives more personalised guidance incorporating an enquirer’s wider financial circumstances. The Committee had particular concerns about the static Pension Wise website and recommend it is improved to enable more interaction, including through income calculators and illustrative examples tailored to individual circumstances. Pension freedom also adds to the already strong case for a pensions dashboard, which would allow people to see all their pensions savings in one place. The Committee urge the government to maintain the current momentum behind the proposal by coming forward soon with a timetable for its introduction. Advice gaps and regulation Pension freedom is not yet operating entirely as it should. While the Committee heard impressive evidence of how the advice and product markets were responding to fill gaps, a lack of regulatory clarity is endangering pension savers. The Committee call for clarification of the distinction between guidance and advice; the definitions of safeguarded benefits; and protections in providing advice to insistent clients and also expect to see a reduction in the use of jargon and complex pricing structures. A watching brief Pension freedom has yet to settle down and the publication of data about its operation and subsequent consumer outcomes will give a fuller picture of the effects of the reforms. The Committee’s inquiry focused on guidance and advice but there are other areas of concern, not least levels of charges, to which they may return. Improvements in guidance and advice are crucial to the success of the policy and the Committee will monitor progress closely. It is right that people should be able to choose what to do with their retirement savings. However, freedom to choose is not enough; people must have freedom to make informed choices.
DWP - New State Pension Statements statistics 20 November 2015
The Department for Work & Pensions (DWP) has published a statistical release which provides information on the issue of State Pension Statements.
The DWP State Pension statement statistics has issued a statistical release that gives data on the number of State Pension statements that have been issued in 2014/2015 and 2015/2016. The latest release is an update to those published in September 2015.
DWP can provide people, on request, with a State Pension statement that gives an estimate of their likely State Pension, based on their current National Insurance (NI) record.
The State Pension services that are currently available to an individual are linked to whether they reach their State Pension before or after the new State Pension is introduced, and their age at the time they ask for a statement. More information about the services that are available can be accessed at State Pension statement . A new service giving people a personalised written estimate of what they can expect to receive under the new State Pension system, based on their work history and National Insurance contributions to date, was piloted in September 2014, and was formally launched on 4th October 2014. This service was originally available ‘on request’ to those people who reach State Pension age (SPa) in the first five years of the new scheme. From 7 February 2015 this service was extended to anyone age 55 and over. As from mid-November 2015 and in response to customer feedback, DWP are to include information within the State Pension statements to help customers who have been contracted-out see how National Insurance contributions paid before 6th April 2016 will contribute to their overall pension income.
Occupational and Personal Pension Schemes Miscellaneous Amendments Regulations 2016 24 November 2015
CIPP Policy News Journal
25/04/2016, Page 377 of 453
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