It may be appear an oxymoron (sorry for the intentional use of complex language) to link words such as clarity and understanding to pensions and retirement. However, this must be the aim of everyone in the pensions and retirement industry if we are to ensure individuals understand their choices and make good, informed decisions whilst saving, when taking their pension benefits and when using these to support their lifestyle throughout retirement.
There are some good examples already in existence in terms of pension communications, retirement support and pension engagement exercises, but these are not yet wholesale across all schemes and all employers and much jargon and complexity still exists.
The art of any good communication starts with really understanding the user and indeed the user with the lowest level of financial literacy. Keeping things short, simple and clear are the next pillars of good practice. Then comes making it easy for users to know what they have to do and making those steps clear, easy and accessible.
This consultation is great news for the industry as well as for all individuals in pension schemes and planning their retirement.
ABI consults on simplifying pensions language By Louise Fordham The Association of British Insurers (ABI) is launching a consultation into the language used around pensions and retirement savings. Its consultation will inform the work of the Pensions Language Steering Group, which involves regulators, industry, consumer groups and the government. The group is working to develop a new guide that simplifies and standardises pensions language. The aim is to help people better understand their retirement and long-term saving options, more easily compare products, and remove confusion around technical terms that have become prominent following the introduction of the pension freedoms in April 2015.