A recent survey of 2,000 UK adults suggests that 70% of Brits are puzzled by financial jargon. A separate report finds that 50% of us think that pension and retirement information is “overwhelming”.
One of the key aspects of financial planning is the peace of mind that comes from working with experienced and highly qualified professionals. But that confidence and sense of control over your financial future can only exist if you fully understand the processes involved.
That’s why at HDA we always speak in plain English and are transparent about everything we do, including the fees we charge.
Keep reading for the full results of these two pension jargon surveys, and why you know you’ll be in safe hands with us.
Financial knowledge varies between generations but jargon is a problem for all
A recent Aviva survey has found that 70% of UK adults get confused by financial jargon, with the under-25s especially in need of help.
Of those surveyed between the age of 18 and 24:
- 39% had never heard of a “pension”
- 43% were unfamiliar with the term “inflation”
- 75% had not heard the term “contents insurance.”
By comparison, 97% of the over-55s had heard of a pension. The under-24s, though, were the most likely to be aware of the phrase “ESG”.
Of course, awareness of a piece of financial jargon is only useful if you also understand its meaning. Of those who confirmed they knew the term “gilt”, less than half (43%) understood what it meant. Just 59% of those familiar with the term “annuity” could confirm its meaning. Awareness of ESG fared slightly better, with 61% who had heard of it also feeling confident about its meaning.
Pension-specific information is overwhelming for many
A second survey, reported in Actuarial Post, found that 50% of UK consumers find pension and retirement information overwhelming. A massive 41% have no idea what to do with it once they’ve received it.
Thankfully, the survey did find that those with a long-term plan in place are much more comfortable with their retirement finances.
A long-term plan, reviewed regularly, is the best way to feel secure about your pension as the big day approaches.
But the documentation you receive from your provider shouldn’t be ignored. It will contain some important information, including up-to-date values, quotations, and the forms required to complete the process and choose your pension option.
That’s why we’re on hand to help.
At HDA we’ll keep you updated at each stage of the process
Actuarial Post goes on to confirm the three topics most people want help with. All three are key elements in the “strategy” stage of the plan we put in place for you. The three questions are:
- How much income will my pension give me in retirement (47%)?
- How much money is there in my pension pot (46%)?
- Am I paying enough money into my pension (32%)?
By getting to know you, understanding your circumstances now, and where you’d like to be in the future, we can put a plan in place aligned with your long-term goals.
We can answer all three of these questions, jargon-free, throughout your career and in the run-up to retirement.
Regular reviews mean that you’ll always know that your plans are on track. And if your priorities change – or external factors mean changes are needed – we can talk you through them, making sure they are tax-efficient and affordable.
You can also be sure that the fees for our advice will always be completely transparent and fully disclosed in advance. Nothing will be hidden from you and there’ll be no nasty surprises.
There is no charge for the time we spend getting to know you and gathering information. Once you’re onboard, we also aim to be fair and give freely of our time and expertise.
We want you to feel able to contact us with your queries and concerns so that you can be sure of getting the help you need when you need it. We’ll always be here for you and we know this is what our clients most appreciate about us.
Get in touch
Economic concepts and financial jargon can be confusing but that’s why we are here.
Our Charted independent financial planners have the knowledge and expertise to talk you through the queries you have in plain English. This gives you the confidence that you’re in control.
Whatever questions you have, please get in touch via email at enquiries@hda-ifa.co.uk or call 01242 514563.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.
