- One third of UK adults have continued using uncompetitive products longer that necessary due to ignoring information they found confusing
- Londoners are most likely to ignore important financial information and lost money due to it (17% vs 13% UK average)
- Only 22% of UK adults say they know what a defined pension contribution is
According to Aviva, a lack of knowledge when it comes to financial terminology is leaving UK adults confused and signing up to financial products without completely understanding what the product offers .
Two in five UK adults (41%) have ignored financial information given to them because they simply didn’t understand the terms used in them.
As a result, 45% of them say they have a poor understanding of the account or policy and how they work, rising to 52% in the South West.
Due to the lack of understanding in financial terminology, almost a third of UK adults (29%) have continued to use uncompetitive products longer than necessary – increasing to 37% in Scotland.
One in six have missed important changes to their policy as a result of ignoring important financial information, that figure rises to over a fifth (21%) for people in London.
Londoners are most likely to have lost money due to ignoring important financial communications from their providers (17% vs 13% UK average)
There are now so many more options open to customers when it comes to retirement planning that it’s vital they have the knowledge to make informed choices and pick the best path for them.
Having a poor understanding of how an account or policy works, or continuing to use uncompetitive products for longer than necessary can make a real difference when it comes to your income in retirement. As well as our new jargon buster on Alexa, Aviva has a whole host of valuable information on our website to help customers understand their pensions.
Of course, the financial services industry needs to ensure that information is communicated in a clear and consistent manner, avoiding unnecessary jargon wherever possible. The Association of British Insurers (ABI) has already carried out some positive work in this area by producing a guide to simplifying language for customers at retirement and we’re completely in support of these principles. – Alistair McQueen, Head of Savings and Retirement at Aviva