Dec 18 2006
Education of consumers is vital to rebuild faith in pensions savings in the UK, it has been claimed, while immediate progress can be made by simplifying the language used in the industry.
Defaqto has published The Pensions Report, revealing that pensioners feel disconnected and wary of pensions, in part due to the complexity of the language sometimes used by providers.
Matt Ward, head of pensions and wealth management at Defaqto, said: "Enhanced educational facilities will play a key role in empowering consumers in the long term, but the industry can achieve quick wins by simply improving the language used to convey pensions information."
He added that consumers would find it easier to identify with the concepts involved in pension saving if the terminology was modernised and translated into everyday language.
Earlier this month, Scottish Widows highlighted the importance of the role of education if government plans to reform the pensions system by 2012 are to succeed.
