Why we need to scrap jargon to make pensions easier to understand – Ros Altmann
By Ross Altman
THE Government has just finished its consultation on the introduction of simpler, standardised annual pension statements. I applaud its aims of helping people understand and engage with their pensions.
My response to the consultation supports the simple two-page statement, showing each customer’s pension value, how much they have paid into it, how much has come from their employer and the Government, what charges they pay and how much their pension may be worth in future (using standard assumptions).
This is a vital first step in making pensions more user-friendly. Standardised, simpler statements need to be mandatory for all providers: Standardisation would enable PensionWise or other guidance and advice to work more effectively for consumers, and it is important that all pension providers, not just workplace schemes, are required to produce the same standard statements for people’s pensions.
Ruston Smith, QuietRoom and Eversheds have developed an excellent simpler statement, which I believe should be made compulsory, rather than just relying on voluntary adoption.
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