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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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