Tackling pensions jargon
The ABI’s launch of its ‘Making Retirement Choices Clear’ guide helps to tackle the use of jargon when talking about pensions and retirement. It proposes that the new retirement options be explained as:
- You can keep your pension pot where it is
- You can take your whole pension pot in one go
- You can take your pension pot as a number of lump sums
- You can get a flexible retirement income
- You can get a guaranteed income for life
- You can choose more than one option and you can mix them
We know from our helpline that customers struggle with the different product names particularly in the drawdown options and have cases where the customer chose the wrong drawdown from the one they wanted because of the names; Flexi access drawdown and Uncrystallised Fund Pension Lump Sum.
Michelle Cracknell, Chief Executive recalled “I listened to one call where the customer had done his homework and repeatedly said that he had chosen the Uncrystallised Fund Pension Lump Sum route. Our guider was aware that the customer’s objectives and income position may not be met with this type of drawdown. After repeating the pros and cons of the different drawdown options, we established that the customer had transposed the names. Did he have any hope with the acronyms FAD and UFPLS to remembering which was which?!”
The TPAS helpline does have a job to explain and translate jargon for customers as it needs to ensure that the customer can make his decision and is best equipped to communicate the decision to the provider or scheme.
If you've got a question about your pension and would like some help and guidance, please get in touch with the team on 0300 123 1047. We're available Monday to Friday, 9 to 5. No question is too big or small.