A consultation on a new pensions language guide has been announced. Co-ordinated by the ABI, with the support of industry, Government and consumer groups, the new guide aims to make pensions language simple, clear and consistent in order help customers better understand their options at retirement.
James Walsh, policy lead, Pensions and Lifetime Savings Association, commented:
“Getting the whole pensions industry to use the same language on retirement options is a good idea and we welcome this consultation.
“Our ‘Understanding Retirement’ research showed that still more will be needed to help savers make good decisions about their finances for retirement. It identified 2.4 million savers, aged 55-70, with defined contribution pension pots not yet in payment who are yet to make a decision on how they will make use of their pensions under the new freedoms. The significant majority of this group told us they have low or medium levels of financial confidence and would like some assistance in making decisions.
"This research underlines the importance and value of our proposal of a Retirement Quality Mark, combined with strong signposting by trustees and providers to help savers spot reliable products that are likely to work for them.”