PensionsJul 9 2014

Clients ‘confused by pension changes’

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The chief executive of the National Federation of Occupational Pensioners said in attempting to simplify pensions, the government had confused people planning for retirement.

Mr Booth said many people assumed that everyone would be getting the flat-rate, £155-a-week state pension.

“In reality, the actual amount that will be paid will vary from one individual to another based on their national insurance contributions, existing Serps and the second state pension,” he said.

His concerns are so great he has urged the government to “significantly improve its communication” to ensure everyone has realistic expectations of their state pension income.

He added: “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.”

Research by MetLife revealed that those aged 55 to 64 are still unclear about the state pension reforms and how they will be personally affected.