Annuity, defined contribution, salary sacrifice…pensions terminology can often sound like a foreign language.
While accountants, financial advisers and payroll professionals are fluent in this language, for smaller employers and savers all over the country, jargon can act as a barrier to really engaging with the subject. Here’s our pensions jargon buster guide to help you to get to grips with the most common terminology used in the pensions industry.
With the introduction of auto enrolment legislation, workplace pensions just can’t be ignored, so looking at ways to improve the way we talk about the topic will help to ensure that more people are switched on and informed about workplace pensions and what pension saving means for them.
We conducted research into the attitudes of millennials (those aged between 18 and 30 years old) and the results were quite shocking. Nearly half of all young adults in the UK who took the survey consider their knowledge of pensions to be poor or very poor.
When asked why they consider their knowledge of pensions to be poor, over a quarter (28%) said they don’t need or want to understand them as they are a long way off retirement, whilst a similar percentage (27%) said they find pensions too complex.
At NOW: Pensions, we try and keep the language in all our communications as simple as possible, as we know this can make a big difference to the degree to which savers engage with their pension.
We focus all our member communications on the benefits of remaining in the scheme and do everything we can to make content clear. This means avoiding industry jargon, explaining financial concepts clearly and not using three words when one will do!
Enrolling your staff into a pension scheme is a communication challenge. But it is also a big opportunity to clearly explain the benefits of workplace pension saving. Check out our four handy tips to boost this communication with your staff to give you the best possible chance to deliver this message to your staff in the not too distant future…