Next month I am due to talk for an hour to the CIPP on the state pension. It would be easy to talk technically about the process behind the recalculation of the state pension age but I want to connect more with an audience of people who care less about technicalities and more about their and their customer’s needs. The CIPP is the Chartered of Payroll Professionals, their customers are the people they pay.
This is what I see when I want to see how much I am getting from my state pension. It is not a guaranteed amount, it will be more than this, but so will the cost of living, it tells me that I have paid national insurance long enough to get my full state pension.
I can compare this with a precious statement which tells me just how much my prospective pension has benefited from the triple lock and shows the importance of my getting another four year’s credits towards the full entitlement.
Although it is initially hard to get to the pension forecast (you need to sort out your Government Gateway) , once you have got access, it is worth it. The forecast tells you everything you need to know (and nothing you don’t).
When I speak with the CIPP , I can compare this forecast with the kind of forecasts they are used to getting about their other pensions. This blog does not have space to show a wake up pack or even a full standard statement
This is the simple pension statement and it only shows you what might happen if you bought a certain type of annuity (many other options are available).
The reason why the wake up packs and statements are so hard to digest compared with the state pension forecast, is that they aren’t forecasting a pension at all – they are advertising the freedom that you get when you don’t get a pension. Which for many people is no freedom at all.
There is space in the market for a product that can market itself as a pension currently paying a specified amount per week based on a simple formula for accrued rights – offering no guarantee.
If the state pension can do it – why can’t the private sector? I think this is the proper job of a CDC pension.