Guide to make pensions clearer


Trade body, the Association of British Insurers, is preparing a new guide to pensions language that could see the end of terms such as "uncrystallised pension funds lump sum" and "flexi-access drawdown" which have been used since the pension freedoms.


This guide aims to standardise the language used to describe options so customers can understand and compare products more easily without having to decipher technical terms.


The ABI has formed a Pensions Language Steering Group, involving industry, government, regulators and consumer groups, to develop simple and consistent language. For the guide and the language to be consistently applied across the sector, the ABI is consulting more widely to gather views, including from media and consumer organisations, until 19 June 2016. 


The Making Retirement Choices Clear guide proposes the new retirement options be explained as:


• You can keep your pension savings where they are.


• 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.


www.abi.org.uk/News/News-releases/2016/04/Long-term-savings-industry-acts-to-take-the-jargon-out-of-pensions