'Time has come for pension passports to become reality'

The time has come for a 'pensions passport' to be made a reality, according to leading figures in the industry who have come out in favour of the idea. The proposed document would hold information on all of a person's pension policies. The aim is to help individuals keep track of their pension pots and to make it easier for them shop around when it comes to buying an annuity. The idea, which appears to have the backing of Pensions Minister Steve Webb, has been welcomed by Barnett Waddingham and LV=.Malcolm McLean, senior consultant at Barnett Waddingham, said: "Clearly the time has come for the idea of pensions passports to become a reality.{desktop}{/desktop}{mobile}{/mobile}"The days when pension papers and other related documents were kept on a shelf or at the back of a desk drawer (or worst of all were not kept at all) should be put behind us and better and more sophisticated methods of information storage brought into use for the benefit of all concerned."He said the days when most people worked all their lives for one employer and had a single pension arrangement have long gone.He said: "Nowadays with perhaps three or more job changes and engagement with a multiplicity of pension products and schemes over the course of a working life it is hardly surprising that those approaching retirement have difficulty remembering exactly what their accumulated pension is and how and where they can get their hands on it."The idea of a pensions passport, a document that would hold information on all of a person's pension policies has much to commend it and should be developed."He admitted there would be difficulties setting it up initially but believes it would be worthwhile in the longer term.Richard Rowney, managing director of LV= Life and Pensions, said his firm had recently encouraged the Government to create a pensions passport.He said: "In order to help people better plan for retirement, we think the passport should set out key facts about their future minimum state pension and private pension and make them aware of the guidance guarantee."If this information was provided in a standardised format, we believe that more people would engage with the retirement income market and the planning process."This would help to empower consumers to shop around and prompt them to start thinking about the options available to them, which in turn would result in improved customer outcomes."

'Time has come for pension passports to become reality'

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