There's a lot of impenetrable jargon surrounding financial products, and pensions can be the worst for it. Statements about 'flexi access drawdown' and 'UFPLS', don't mean much to the average person.
Well, this could be coming to an end, as the big players in the pension game are joining forces to simplify the language that surrounds retirement funds.
Hopefully, all the companies and organisations who provide pensions, will begin to use terms that are easier to understand, whenever someone talks about pensions in the future.
A 'Pension Language Steering Group' has drawn up a guide which looks to help. You can see that here. If you want to make any suggestions for it, you can get in touch with the authors by emailing [email protected] before the 19th June.
This whole thing is being headed-up by the Association of British Insurers, with input from regulators, the government, consumer groups, financial institutions, and others.
With new freedoms for pensions coming into play, it is important that people know what is being talked about, so there's a better chance of informed decisions being made.
The ABI said: "The new guide aims to make pensions language simple, clear and consistent in order to help customers better understand their options at retirement."
"Many people find the new retirement choices confusing, and across the long term savings sector, different terms are used to describe options. This guide aims to standardise the language used to describe options so customers can understand and compare products more easily without having to decipher technical terms."