Overwhelmed by all the pension jargon? Fear not, our pension glossary has you covered. All the important terms and acronyms explained right here.
What is a Pension Statement?
Most pension providers issue one pension statement a year to members of their schemes. Your statement should show you how much is in your pension pot and an estimate of how much money you might receive when you retire. It should also show any special guarantees that your pension has, as well as its transfer value – the amount you would get if you changed provider or cashed in your whole pot. You can also get a state pension statement from the government, online at gov.uk that shows how much you will receive from the state when you reach state pension age.
Pension statement video transcript:
Hi, I'm Michelle Gribbin, Chief Investment Officer at Profile Pensions. We know that pensions can be complicated to understand, so we've put together some impartial videos to help answer some of the most common customer questions.
You should receive a statement about your pension each year from your pension provider. These contain lots of useful information about your pension. Statements can often be complicated, and the Financial Conduct Authority is working to standard these statements down to a maximum of two pages.
The kind of information you can expect to receive on your statement is; the type of scheme you have and it's value, how the monies are invested, your retirement age and the income you are likely to receive once you retire. Details of any guarantees will also be included.
You should have a transfer value, should you wish to transfer your monies away from the scheme, and details of any exit fees. What you won't see on your statement is typically any charges that are made on your fund. You may need to contact your provider to find these out.
It's really important that you update your pension provider with any change of address so they can continue to send you valuable updates about your pension.