Providers axe complex language from pensions communications
Thousands of pensions documents have been adapted and simplified for consumers after a two-year industry initiative, according to the Association of British Insurers (ABI).
Firms across the sector have been trimming down their pensions communications, using simpler language, softening worrying language, and engaging with consumers earlier.
One firm was said to have reviewed and altered 800 member documents to reduce overly-complex terminology, while others have worked with the Plain English Campaign to train consumer-facing staff.
Further, customer research has been commissioned to align language to resonate with saver. Some documents have replaced technical language with visual metaphors and bespoke animations, with one example of an apple tree representing growth and withdrawal options.
ABI head of retirement policy Rob Yuille said the movements will make savers feel more confident about their pensions.
"It's been widely acknowledged by the industry, regulators and government that pensions jargon is far too confusing for everyday consumers - even more so with the advent of pensions freedoms," he said. "The work being done by the industry to simplify and humanise the language used in retirement communications will give people more confidence and reduce anxiety when they come to making important decisions about their financial future at retirement."
The efforts included setting out savers' at-retirement options in a short and easy to understand manner, as set out in the ABI-led Making Retirement Choices Clear initiative. These are that members can leave savings where they are, take their whole pot in one go, take a number of lump sums, get a flexible retirement income, get a guaranteed income, or opt for a mix.
The latest update comes after the auto-enrolment (AE) review, published in December, lamented "unnecessarily complicated and confusing" pension communications, arguing "at the heart of effective engagement lies the need for individuals to be able to easily understand the messages and information about pension saving they receive".
One of the review's chairmen , Tesco Pensions Investment chairman Ruston Smith, who headed up the review's engagement analysis, previously said "we have created a legacy of jargon" and that the quantity of information savers receive everyday means these communications have to be simple.
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