You may already be aware that over the next few years the government will be launching Pensions Dashboards, a platform that will allow individuals to see their pensions information all in one place. As part of the preparation for this, they wanted to ensure that all pension projections are worked out under the same set of assumptions so it’s easy for members to review multiple pension pots (if necessary) within the platform once it is live.
For this reason, we have changed the way we calculate the amount you may receive as an annual pension when you come to retire. You may see a significant difference when comparing this figure to the one shown in previous benefit statements because of these changes.
Last year the annual pension figure was for a pension that:
- Had a five-year guarantee
- Issued payments that increase annually in line with the Retail Price Index (RPI) to a maximum of 3%
- Provided a pension for your spouse of 50% of your pension in the event of your death
- Took your gender into consideration
This year the annual pension figure is for a pension that:
- Has a five-year guarantee
- Issues level payments to you that do not increase over time
- Provides for you solely
- Does not take your gender into consideration
This is in line with new legislation. This new legislation also set out new rules for how we calculate investment returns for your pension account between now and when you retire.