UK - Two local authority schemes have teamed up to produce total benefit statements as part of plans to encourage members to increase their savings.
The £4.8bn West Midlands Metropolitan Authorities Pension Fund and the £2.8bn London Pensions Fund Authority Pension Fund are developing a total benefits statement that will show members how much they will receive in state, occupational and AVC benefits when they retire.
LPFA chief executive Peter Scales said the schemes also planned to develop a model to calculate spending.
West Midlands Metropolitan Authorities Pension Fund chief pensions officer Mike Woodall said that by combining the two, members would see how much they needed to put away for their retirement. He said the next stage would be to adapt the model so that it took account of all forms of savings.
“We’ve got to get people to look at pensions in their totality. We believe we need to be in a position to provide that comprehensive statement to them. Additionally – and we think that this is an area that is not being considered by individuals – is how much will people have to live on in retirement?
“We can give them a prediction of benefits and a template that will identify what their ongoing expenditure will be. They can then look up how much they are likely to receive per week, month, year and how much they will need to survive.
“That may help them to realise the provision they are currently making is insufficient.”
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