Savers receiving 'inadequate pension information', MPs warn
MPs have warned that millions of pension savers may be planning their retirement based on incorrect information.
According to the Commons Work and Pensions Committee, details sent out to savers about when they will receive their state pension and its expected value were ‘inadequate’ and ‘confusing’.
Additionally, the committee warned that the unclear information affected women in particular, as they become increasingly vulnerable as retirement ages are aligned with those of men.
By October 2020, the state pension age will reach 66, with the women’s pension age coming into line with men’s.
The women’s state pension age had previously been set at 60, with men’s set at 65.
The warning comes within an interim report on the New State Pension (NSP). This pension will replace the basic and additional state pensions from April 2016.
A full inquiry was instigated, but MPs have said that the interim report was prepared in the meantime as the issue was ‘too urgent’ to wait for the completion of the document.
The report stated: ‘At a crucial time of reform to the state pension age, Department for Work and Pensions (DWP) statements are insufficiently clear.
‘This lack of clarity increases the chances that people will misunderstand the value of their state pension or the age from which they will receive it. In turn, this increases the chances that they will not best plan for retirement.’
Commenting on the report, a DWP spokesman said: ‘We are committed to ensuring that the public understands the positive changes being made to the state pension. We've already done a huge amount - including TV, radio and print advertising - and this activity will continue over the coming months and years’.