Pension jargon puts savers off

10 Jan 12

The jargon associated with pensions is damaging people's chances of saving for retirement, research from the National Employment Savings Trust (NEST), has revealed.

Auto-enrolment is due to start being phased in this October, and the research reveals that a small minority of people think that pensions and the language used to explain them are straightforward, easy to understand and simple.

Worryingly, the research also reveals that one in three people are putting off thinking about saving for retirement because they find them confusing.

Commenting, chief executive of NEST, Tim Jones said: "Pension jargon could be damaging people's chances of building a better income in retirement. As millions of people are due to start saving for their retirement for the first time through automatic enrolment, NEST's research shows that getting the language right is a challenge all pension providers will need to tackle."

As a result, NEST has put together a jargon-busting phrasebook.

Read our summary of the 2012 pension reforms.

 

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