Pension jargon puts savers off

One in three (29%) employees put off thinking about saving for retirement because they find pensions confusing, according to research by the National Employment Savings Trust (Nest).

The Nest/YouGov survey, which polled nearly 2,000 UK adults, found that few respondents (6%) think pensions are straightforward, 4% find them easy to understand, 3% call them simple, 5% would term them interesting, and 2% call them engaging.

However, 17% of respondents called pensions boring, 28% said they were off-putting, and 29% termed them difficult.

Additional findings from the survey include:

  • 8% of respondents said that information provided by pension providers is generally clear and engaging.
  • 48% of respondents find pensions confusing and 51% call them complicated.
  • 50% of respondents find pensions harder to understand than other types of financial products.

The research results have been released by Nest alongside an updated version of its pensions phrasebook.

Tim Jones, chief executive of Nest, said: “Pension jargon could be damaging people’s chances of building a better income in retirement.

“As millions of people are due to start saving for their retirement for the first time through automatic enrolment, Nest’s research shows that getting the language right is a challenge all pension providers will need to tackle.

“The latest version of Nest’s phrasebook includes new jargon-busting terms we have tested with our likely members and their employers to help make pensions easier to understand.†

“We are committed to talking about pensions in language that people understand and will continue to share our work in this important area as it develops further.”

Read more articles on communicating pension schemes