A recent study(2) has found that a significant proportion of over-55s struggle to understand a range of key terms and rules relating to pensions. The survey asked 2,002 UK adults to identify and define various pension-related terms and acronyms.
Baffled
Findings from the survey highlighted a serious lack of pensions knowledge, even amongst those people who have already reached an age where they can access any defined contribution personal pensions savings they have accumulated.
With only one in five baby boomers (aged 55 to 75) able to correctly identify the definition of the Lifetime Allowance and almost two in three incorrectly defining the Annual Allowance, it is clear that many people are struggling to understand the terminology relating to their pensions.
Confused
In addition, very few respondents were able to correctly identify key pension acronyms. For example, only 4.5% recognised TVAs (transfer value analysis) and just 1% identified TVCs (transfer value comparator) as pensions acronyms.
Adding to the confusion, around 4% of respondents in each case thought that the texting acronym LOL, the television shopping channel QVC and the footballing term ‘offside’ were all pension-related terms.
Cutting through the jargon
If you are one of the baffled and confused, then don’t panic, you’re certainly not alone! We know that many people view pensions as complex products and are often bemused by the complicated array of acronyms and jargon pension providers use.
Funding your retirement and feeling confident that you understand your pension products is vitally important. So, we’re here to help. We’ll cut through the jargon, explain everything in plain English and help guide you through the pensions maze using language you’ll understand.
Get in touch
Please don’t hesitate to get in touch with our Financial Advisor based in East Sussex for pension advice. Your initial pension review meeting is free of charge. Our advisors can travel across the South East to meet you – Eastbourne, Hastings, Bexhill, Uckfield, Heathfield, Seaford, Newhaven, Tunbridge Wells, Maidstone, East Grinstead and further afield.
Learn more about our experienced advisors.
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
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(2)Portafina, June 2019
