You are here: Home - Uncategorized -

Brits baffled by financial jargon

Written by:

Confusing financial terms are encouraging people to ignore their pension provision altogether, new research has found.

The research from JPMorgan INVEST found that people were so confused that over a quarter thought that a CD (27% of people) and a DVD (31% of respondents) are pension terms.

Additionally, just 20% understood what basic pension terminology, such as defined contribution (DC) or defined benefit (DB) meant. Some 53% also thought that pension providers used financial vocabulary to exaggerate the complexity of pensions in order to confuse people into taking a pension with them.

On the back of the research, JPMorgan INVEST called for a simplification of pension communications to help combat the problem that it said was responsible for the fact that 40.5% of the UK workforce had insufficient plans to secure their financial future.

Jonathan Watts-Lay, director of JPMorgan INVEST, said: “Confusing financial terminology is contributing to the UK pensions’ deficit and it is worrying that this is delaying half of the UK from taking out a pension. Clearly, as a nation we are lacking basic financial knowledge.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Debt not a problem for most

Most people in the UK are happy with their debts, and one in five expect to reduce their borrowing over...