A group of pension experts has decided enough is enough for jargon and have today clubbed together to clean up the language of the industry.
The Association of British Insurers (ABI) is heading up a Pensions Language Steering Group formed of bodies from government, industry, regulators and consumer groups. Names on the list include the Financial Conduct Authority, the Department for Work and Pensions and The Money Advice Service.
The Steering Group is aiming to develop a guide which will clear out the technical terms that customers have difficulties getting their heads around and instead aim to present products in a way that is easier to understand.
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"The industry recognises that pension language can be confusing and is working to make sure more people understand the new options available to them for their retirement," said Dr Yvonne Braun, director of policy, long term savings and protection at the ABI. "Customers who are engaged in their pension are better able to make decisions that suit their individual circumstances so it’s important that we make these options as clear and comparable as possible.
"This guide to making retirement choices clear could make a real difference by helping people to better understand their options. But we need the wider sector to contribute to the consultation and implement the guide so that simple language can be used consistently across the whole market and by all those talking to people about their retirement income options."
Tomorrow, the ABI will launch its consultation to gather input on what should be put in the guide. This consultation will run until 19 June.