Pension communication needs clarifying
19/12/2006
The pension industry has been told it needs to modernise its terminology or risk alienating consumers.
The Pensions Report, published by Defaqto, looked into pension terminology and found that the language used by the industry left consumers cold and apprehensive.
In addition, it was highlighted that the word 'pension' itself has been tarnished and comes with negative connotations.
Matt Ward, Defaqto's head of Pensions and Wealth Management, said the industry must work to rebuild the public's faith in pension savings.
"Enhanced educational facilities and programmes will play a key role in empowering consumers to make informed financial decisions over the long-term, but the industry can achieve quick wins by simply improving the language used to convey pensions information," said Mr Ward.
"The consumer will identify more easily with features and terminology that they see in their everyday life and the industry needs to tap into this 'translation' of financial services terminology."
A recent study by Aon Consulting has found that one in six working adults in the UK are ignoring pension advice and feel that either the government or their employer should fund their retirement.
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