The Government’s “nudge unit” is to partner with LV= to work on the potential for a pension passport from April, Money Marketing can reveal, with a sample group of the insurer’s customers receiving simplified documents from April.
The insurer’s staff has been working with Behavioural Insights, created by the Government in 2010, and is in the final stages of creating a simplified document to replace “wake up packs” sent to customers six months before retirement.
Treasury economic secretary Andrea Leadsom says the work will complement the upcoming launch of Pension Wise.
She says: “By simplifying the information people receive when approaching retirement, we are enabling them to make the most of the Pension Wise service and to make informed choices.
“This is a real opportunity to demystify the pensions landscape and we welcome LV=’s longstanding interest in this area and their commitment to work with us to make this a reality. We will continue to work with the industry and consumer groups to develop this exciting product.”
LV= head of retirement and change Phil Brown says: “This is about testing whether giving customers less, but more relevant, information is more productive than giving them more.”
The idea has previously received the support of Liberal Democrat pensions minister Steve Webb, who said in October that the Government was already talking to providers about ensuring information is consistent and easy to understand, while the FCA said in December that it would support the introduction of a “pensions dashboard”.
Brown adds that the pilot should be part of a wider move to better engage savers in their retirement options.