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Providers fear Govt pension statement will confuse public

Pension providers are voicing concerns that the Government&#39s Combined


Pension Statement may confuse the public about their pension entitlement.


They fear the statement, which provides pension planholders with estimates


for their retirement income by combining details of private pensions and


state benefits, could lead to people expecting more income than they will


get.


Each provider is expected to provide customers with details of what they


can exp ect in retirement but firms are concerned that there will be a lot


of duplication over the amount of state benefits for those who have plans


with more than one provider.


There is concern that life offices will use only one projection rate while


the FSA requires three rates to be calculated to take account of varying


investment performance.


Life offices say that pro viding comparisons will be difficult, claiming


it is hard to provide projections for occupational schemes and


problematical to show other benefits on a like for like basis such as


indexation and wid ows benefits.


CGU head of pensions strategy Jerry Barnfield says: “The only way


providers can give accurate up to date information about state benefits is


by having access to DSS data.”

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