What is it?
The Standard Annual Statement is a two-page template that standardises how workplace pension schemes tell defined contribution (DC) members about their pension pot. It’s designed to be something just about any UK scheme can use.
“I get five different statements, all from different providers, and this is better than anything I get at the moment.”
Male, over 35
Why we created it
Automatic enrolment is nudging millions of people into DC pension schemes.
Every year they get a statement, but only 52% read theirs and only 23% say they understand it ‘very well’, according to the Financial Conduct Authority’s 2017 Financial Lives Survey.
To make good decisions, people need useful information presented in a way they can understand. They also need to compare their different pension pots, if they have more than one.
That’s why we created the Standard Annual Statement.
It’s free for everyone to use.
Who we worked with
It took a collaborative effort over 18 months to write and design the Standard Annual Statement. The project was started by the Department of Work and Pensions and led by Ruston Smith. Quietroom wrote it and Eversheds Sutherland provided legal support. Consumer testing was carried out by Ignition House.
The project brought together 20 insurers, 10 master trusts and the following key organisations:
Pensions and Lifetime Savings Association
Association of British Insurers
Pensions Management Institute
Association of Member Nominated Trustees
Pension Administration Standards Association
The Pensions Regulator
Transparency Task Force
Journalists from the Financial Times, the Independent, Professional Pensions and Pensions Insight
"We encourage the trustees of any defined contribution scheme looking to improve its member engagement to take this new format on board as good practice."
Lesley Titcomb, Chief Executive of The Pensions Regulator
How you can use it
You can download and use the statement as it is, or you can use it to help you improve your existing annual statements.