Steve Webb has challenged providers to simplify “baffling” industry jargon following the launch of a new pensions language guide.
The guide, which builds on similar work undertaken by the ABI and Nest, recommends ditching words such as “accumulation” and “trivial commutation” and replacing them with simpler terms ahead of automatic enrolment.
Pensions minister Webb (pictured) says the industry has been guilty of hiding behind “unintelligible language” and “confusing jargon”.
He says: “In a world where 7 million people aren’t saving we simply can’t hide behind unintelligible language and confusing jargon.
“This is a challenge for us all to make pensions easy to understand, so that people do not give up saving at the first hurdle.
“”This is not about dumbing down a subject that by its nature is complicated. It’s about not hiding behind confusing phrases and doing our best to make this subject easy to understand to people beyond those that work in the industry.”
The DWP says the guide is a “work in progress” and will be added to in the future.