contributed in helping women feel more confident about their financial prospects once they give up work.
However, anyone who has taken significant periods of time away from full time work can see both their pension savings and their eligibility for the full State Pension take a hit - something that the women of the 'Class of 2015' are likely to see as they are from the generation where women were more likely to have stayed at home with the family. There are a number of steps that both men and women can take to further improve their retirement income prospects, including maintaining pension contributions during career breaks and if possible, making voluntary National Insurance contributions upon returning to work. A consultation with a financial adviser or retirement specialist could also help people construct a sound retirement plan and secure a more comfortable retirement income." Prudential's Class of 2015 research previously found the average expected annual retirement income for all retirees in 2015 reached a six-year high of £17,000, including income from private, company and state pensions. This is £1,200 higher than the average expected income of 2014. Pensions minister Steve Webb has called on the next government to implement a combined state and private pension statement within the next two years that also incorporates aspects of pot-follows-member. According to a Financial Times article, speaking at the Ceridian Customer Conference 2015, the minister called for a system similar to the 'pensions dashboard' proposed by the Financial Conduct Authority in its retirement income market study late last year. The dashboard would allow members to view their state, company and private pension benefits in one place. “Already this year we’re digitising the national insurance records so that you’ll be able to go to a website, see what national insurance you’ve paid… and see what that’ll do to your state pension,” said the minister. Pensions Minister calls for pensions dashboard within two years 12 March 2015
“We already, on a paper-based system, contact 2m workers with company pensions to tell them their state and company pension in one place.”
The proposed system could also draw on databases being built for pot-follows-member, he said, allowing for a consolidated statement of pension benefits. But Ros Altmann, the government's older workers' champion, was doubtful a system would be implemented in two years .
“It is a massive task. It’s something that should happen and could happen in the long term,” she said.
Altmann added that the main obstacles to such a system were the continued prevalence of defined benefit – where calculating pensions is more complex than with DC – and the simplification of the state pension.
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Majority of UK workers think they should double pension contributions
13 March 2015
CIPP Policy News Journal
08/04/2015, Page 430 of 521
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