At Nexus Wealth Planning we are conscious of the need to ensure we don’t confuse anyone with jargon. It is very important that our clients absolutely understand what our recommendations mean for them.
In an industry which seems awash with complex and confusing terminology, this can at times feel like fighting a losing battle!
However, hope may be on the horizon with news that the Association of British Insurers plans to design a guide to simplify the language used for pensions.
It has proposed using simpler language like: “You can keep your pension savings where they are” and “You can take your whole pension pot in one go” instead of existing terms.
Yvonne Braun, ABI director of policy, long-term savings and protection, said it is vital that pension language reflects the best interests of customers.
“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.
“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.”
A consultation will run until 19 June and it is hoped many from the industry will contribute to the guide so that it establishes a useful lexicon.
