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Minister: Clear pensions statements should lead to greater individual savings

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Jeff Rooker, Social Security Minister, yesterday presented a Kiss FM employee with their first combined pensions statement.

Emap, one of the pilot partners currently working with the DSS on combined pension statements, issued them to over 2,000 employees including staff from Kiss FM and Smash Hits.

The statement sets out an individual's estimated income in retirement by giving an estimate of both state and private pension provision.

Jeff Rooker said, "Once people see in black and white what they will have to live on I think they will realise the importance of saving for their old age and I hope it will prompt them to review the provision they have made for their retirement."

"These statements will be one of the important factors in getting people to save by showing them how much pension they have built up and how much more they can get if they save."

"Working people, who can afford it have a responsibility to save for their retirement. But the Government has a duty to help them. This is why from April 2001 we will introduce stakeholder pensions that will offer a low cost, flexible and secure pension option. We will also introduce the Pension Credit in 2003 which will reward people who have saved for the first time."

The Government hopes that up to 15 million working people will be receiving combined annual pension statements by 2005.

Ralph Turner, Emap's Group Benefits Manager, said: "Our staff deserve to know about their future pension entitlements. This will allow them to make informed choices about their future and make proper provision for their old age. We are really pleased to be co-operating with the Government with this very important pilot.

In addition to Emap the DSS is also working in partnership with a number of companies on pilot schemes for the delivery of annual combined pensions statements including NPI, Sainsburys, AXA/Sunlife and Prudential.

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