LV= pilots 'pension passport' backed by Treasury
Simple, jargon-free pension statement being trialled for retiring savers.
LV= has teamed up with the Treasury to create the first 'pension passport'.
The insurer will now trial the simple, jargon-free document with savers approaching retirement in place of traditional wake-up packs.
It's hoped the pilot scheme will encourage better engagement and help people make more informed choices about their retirement income.
The pension passport
LV=’s pension passport is a simple single-page document that spells out where a pension saver stands.
It shows how much a pension saver has in their pot, what type of scheme that money is in and any special terms their pension attracts such as guaranteed annuity rates.
There’s also three steps on ‘what to do next’ including recommendations to visit the Government's Pension Wise website and book an appointment with the service to receive free guidance.
You can see an example of LV='s pension passport below:
Carefully designed
LV= says it has worked with the Cabinet Office's behavioural insight team to ensure that the information it provides in its pension passport is sufficient to encourage pension savers to shop around for the right solution or combination of solution for their needs.
This is especially important given that new pension freedoms mean savers now have more choice about how they take an income from their nest egg.
Phil Brown, LV= head of retirement proposition and change, said: "People spend a lifetime building up their pension funds and we want to encourage them to make the most of their pots."
A Treasury spokesperson said: “We have been working closely with LV= and other stakeholders to develop a ‘pension passport‘ that will simplify and clarify people’s pension information, helping them to make an informed choice about their savings.”
Is your pension on track? Get up to date with Plans
Will other firms offer one?
LV= is the only firm trialling the pension passport with the Treasury.
But if successful it could mean other pension companies adopt a similar type of document to send to retiring savers.
Is your pension on track? Get up to date with Plans
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