The Chartered Institute of Payroll Professionals
Policy Bi-Monthly Newsletter – September 2016
New ‘trace a lost pension’ tool launched 14 September 2016
There are millions of pounds sitting in lost pensions. To help savers locate lost savings, The Pensions Advisory Service (TPAS) has developed a new trace a lost pension tool .
TPAS is contacted by lots of savers each year asking for help in finding a pension they may have lost. Have you checked whether you have any pension due to you from all of the employers you’ve worked for? There are millions of pounds sitting in lost pensions. Could some of it be yours? Sometimes people don’t even realise that they have a pension because of automatic enrolment. If you’ve been automatically enrolled and you haven’t opted out, you will have one, so make sure you keep track of it! Or, perhaps you were sold a contracted out policy in the 1990s. When did you last get a statement? Losing a pension continues to be an issue for many, especially when you have been in more than one scheme, have changed employer or moved home. But, there are some simple tips you can use to help keep track of your pension pots, including making sure contact details are up to date. Whatever the reason for losing track, it’s important that you claim your pension entitlement as soon as possible.
The new trace a lost pension tool will help you understand whether a pension is likely to be due to you and provides tips on what you can do to find them. It also explains how TPAS can help.
Read more about lost pensions on TPAS website .
Pensions Dashboard prototype to be ready by spring 2017 14 September 2016
11 leading pension providers will build a Pensions Dashboard prototype by March 2017.
The Treasury has successfully secured agreement from eleven of the largest pension providers - Aviva, Aon, HSBC, LV=, NEST, Now: Pensions, People’s Pension, Royal London, Standard Life, Zurich and Willis Towers Watson - to build the first prototype of its kind in the UK. The ABI has also agreed to manage the pilot project.
The Pensions Dashboard, first announced at Budget 2016 , is the latest step in the government’s wider strategy to help people to engage with their pensions earlier rather than nearing the point of retirement.
On average, a person can have 11 employers over their working life, which means that they could end up with almost a dozen private pensions by the time they retire.
At the moment there is no way for people to see the value of all of their pensions in one place and research has shown that over a third of people approaching retirement find it difficult to keep track of their pension pots.
The pensions dashboard aims to also provide a link to “lost” pension pots with previous employers and could help release the £400 million worth of pensions savings that the Department for Work and Pension estimate are currently unclaimed.
It could also prompt people to seek advice as to whether their pension savings are in the best place.
The Economic Secretary, Simon Kirby, said:
“Pensions and savings decisions are some of the most important a person will make during their lifetime. The government is determined to make sure people can access the information they need to plan effectively for their future.
Technology, like mobile phone apps, has made day to day banking easier than it’s ever been and it is time for pensions to catch up. Think of a future where you can compare your pension pots with the touch of a button.
The Pensions Dashboard will unlock a huge amount of information that will help people make the best choices for them and I am delighted that eleven of the largest pension providers have agreed to work together to build a working prototype by March 2017.”
cipp.org.uk
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