Free state pension forecasts now available for over-55s

Jessica Morris
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Millions more people are now eligible for a free estimate of how much is in their state pension pot.

Over-55's can request a personalised pension statement estimating how much they'll receive upon retirement. It's calculated based on the national insurance contributions an individual has made to-date.

The move will make retirement planning easier for more people as statements were previously available only to over-60's. It'll give them a better idea of their options under pension freedoms coming in 6 April.

Under the new rules, over-55's can take money from their pension pots whenever they like (subject to a marginal tax rate) as they're no longer obligated to buy an annuity.

"I've always been clear that people should be given the freedom to make their own financial decisions - but it's crucial everyone has all the information to help them to make the right choices," Steve Webb, minister for pensions, said.

"We are making sure people have the sources and support they need ahead of the new freedoms in April, so they can take the time to plan how to best use their pension saving for a secure retirement."

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