Pensions in plain English make pension transfer easier for UK expats

Would-be expat retirees attempting to organise their financial requirements before heading overseas will welcome a long-overdue change in the technical language of most paperwork.

For retirement savers attempting to make sense of advice from pension providers and financial advisors prior to leaving the UK for life in the sun, the Association of British Insurers’ newly simplified and streamlined forms and documents are exactly what’s needed. The industry body has spent two full years grappling with pensions jargon, with considerable and much-needed help from the Plain English Campaign. The changes won’t stop there, as the association has commissioned research into replacing tech jargon with customised icons and even animations.

Other initiatives will include softening language likely to worry consumers, such as ‘we have some warnings we need to give you’ being replaced with ‘we’d like to help you ensure you’re doing the right thing’. Replacing industry jargon and technical terms with visual aids and contacting prospective clients up to five years before they retire rather than hitting on them six weeks before they finish work is also on the cards as an improvement. One company has decided on an apple tree as a metaphor for the growth of a pension pot as well as a demonstration of withdrawal options.

According to the ABI’s head of retirement policy Rob Yuille, the entire industry in addition to regulators and the government have been well aware of the confusion caused by professional jargon. The issue became more serious after the advent of pension freedoms, especially as it gave unprincipled advisors another tool with which to rip off the unwary. The changes are also expected to personalise the advice given by industry professionals, thus making the entire process less daunting and easier to understand.