The pensions regulator is making efforts to ensure that pensions trustees help scheme members make informed decisions about their pensions to try and help them get the uk best annuity rates at retirement. They, the Pensions Regulator (TPR) has recently launched a campaign to promote better practice in defined-contribution (DC, like personal pension) pension schemes, and, over the next few months TPR will take steps to try and ensure pension scheme trustees are aware of their duties, obligations, and responsibilities to their scheme members as well of their role in helping them make the right decisions about their retirement planning.
The regulator will also be taking steps to ensure members understand and are sure of their retirement options and that employers are encouraging their employees to think much more than they currently are about their long-term savings. Indeed, just this week, their chief executive, David Norgrave, was reported as saying that many people are going to have to work that much longer, partly because we are not saving for retirement as we did in the past. And, if we don’t save enough, it doesn’t really matter if we find the best annuity rates at retirement, because the pension fund itself won’t be sufficient to get the right level of income.
But a spokeswoman from TPR recently told HR magazine that they play no active role in setting such pension rules. It is an issue for the Department for Work and Pensions (DWP) and it is Parliament that sets out the rules regarding the state pension age. They (TPR) do have an integral part to play in making UK pensions work better and deliver improved results for the millions of occupational pension scheme members.
TPR has recently updated its leaflet, Making your Retirement Choices, for pensions trustees to give to staff six months before their retirement, and it is also about to commence a survey of pre-retirement literature in an attempt to improve the information for employees approaching retirement age. Their spokeswoman added that they believe that they can make a major difference to members through this fresh work. A 65-year-old male purchasing a pension annuity could lose up to £600 a year if he chooses the lowest quote rather than the highest annuity quotes. So making an informed choice is really very important. Members must shop around as they approach retirement and must know that they have many choices when it comes to planning their retirement income.
