Taking forward the work done previously by the National Employment Savings Trust (NEST) and the Association of British Insurers (ABI), the Department for Work and Pensions (DWP) has released a guide today to simplify pension ‘jargons’.
Minister for pensions Steve Webb said the effort was not about “dumbing down” the subject, but making the subject accessible to a wide-range of audiences, beyond those working in the industry; as an increasing number of providers get ready with their ‘language guides’ developed with the aim of making the topic more understandable for the average man.
“It (the new pensions guide) looks at what language we should keep and what we should replace and makes recommendations for language that is more simple and straightforward”, said Mr. Webb.
The guide recommends simpler words such as ‘retirement income’ instead of ‘annuity’ and ‘different types of assets’ rather than ‘asset classes’.
Since pension saving is an important step towards retirement planning, Mr. Webb underscored the importance of making pensions easy to understand, so that people don’t stop saving “at the first hurdle”.
“In a world where seven million people aren’t saving, we simply can’t hide behind unintelligible language and confusing jargon. This was never more important that right now as we move towards the launch of automatic enrolment”, said Mr. Webb.
Similar guides simplifying investment jargons have been launched by NEST and ABI earlier this year.
DWP described the new jargon buster as a “work in progress” and said it will be updated on a regular basis.