Annual pension statements
One of the most important ways for you to stay informed about your pension scheme benefits is by reviewing your annual pension statements. This will give you a rough idea of the pension you might get when you retire, and you can use this information to make decisions, such as whether you need to increase your pension contributions.
From 2023/2024, members of occupational pension schemes will receive what’s formally called a ‘pension benefit statement’ each year. The pension benefit statement will show two different pension estimates for members of defined contribution (DC) schemes. Deferred members of occupational pension schemes, i.e., those who have left employment but have not yet retired, will also be entitled to receive annual pension benefit statements from 2023/2024.
Annual pension statements contain information such as
- the value of contributions you and your employer have paid into your pension account so far,
- the pension you might receive at retirement based on those contributions along with future contributions at your current rate (if any), or
- if you are a member of a DB scheme, your pension based on your pensionable service at retirement.
If you are a member of a DC scheme or are a personal retirement savings account (PRSA) contributor, the figures in your annual pension statement will be estimated based on a number of assumptions about the future, like future investment returns and the cost of purchasing a pension when you come to retire. If you are a member of a DB scheme, the figures in your annual pension statement will be based on the formulae set out in the rules of your particular scheme.
If you are a PRSA contributor, you will receive a statement of account from your PRSA provider every six months, in addition to your annual statement.