Friday 16th June 2006
A large number of people in the UK have been put off from taking out a pension due to the industrys confusing jargon, a new report claims.
A study by the financial education provider, JPMorgan Invest, found that just under half of those not paying into a pension said confusing terminology had put them off.
In addition, more than half of the 1,079 people surveyed said they believe that pensions are made deliberately difficult to understand by providers in order to confuse people in to taking one out.
The study found that around 80 per cent of the public do not understand basic pensions terminology such as defined contributions and defined benefits.
"Confusing financial terminology is contributing to the UK pensions deficit and it is worrying that this is delaying half of the UK from taking out a pension," said the director of JPMorgan Invest, Jonathan Watts-Lay.
"Clearly, as a nation we are lacking basic financial knowledge."
Those under the age of 30 were found to be more at ease with the industrys jargon than people above 40.
©
Everything on preparing your finances for your children's futures. From Child Trust Funds through to tax planning. Request your FREE brochures here.
