Much better communication on pensions reform a must

The pensioner organisation, NFOP, is concerned about future retirees as research reveals that there is little awareness and understanding of pension reforms amongst those approaching retirement.

Research by MetLife has revealed that those aged 55 to 64 are unclear about the state pension reforms, how they will affect them, or whether they will be better or worse off in retirement when the flat-rate State Pension comes into effect in April 2016.

Malcolm Booth New CEO at NFOP Oct2012Malcolm Booth, CEO of the National Federation of Occupational Pensioners (NFOP), has said: “It is so important that those approaching retirement are aware of how much they will be getting under the new £155 a week ‘flat-rate’ state pension.

“In reality the actual amount that will be paid will vary from one individual to another, based upon their National Insurance contributions, existing SERPS and State Second Pension.

“NFOP agree that the industry and Government should significantly improve its communication to ensure all those approaching retirement understand how the reforms affect their pension.

“People need to be able to make financial plans for retirement so it should be made very clear what people will get under the new pension reforms.

“There is a risk that without better communication many will make plans on expected levels of income in retirement and could suddenly find they are not receiving what they thought they would be.

“Everyone knows that pensions are complicated. It will not be helpful to over-simplify the outcomes of the reforms leaving many unsure of what they can expect to have in retirement.”