Pensions ”must be understandable”

old lady scratching her head

old lady scratching her headIn order to safeguard your family's future, it might be a good idea to start planning early for your retirement.

But with auto-enrolment pension reforms due to come into force from next year, it seems a number of us feel we lack information about the ways in which retirement benefits actually work.

New research from the National Association of Pension Funds (NAPF) shows that 80% of us would like more transparency when it comes to the costs of pensions and how they actually work in practice.

Joanne Segars, NAPF chief executive, says pensions should be made less complicated for people to get their heads around.

She stated: "The pensions industry has to be much more up front about what it is doing. People need information about their pension in a form they understand. That means pounds and pence, not basis points and unit prices.

"With auto-enrolment just around the corner, the industry needs to do more to help people engage with their pension."

If you're unsure about any key financial matters, a range of easy-to-understand, jargon-free advice is on offer from us here at MyFamilyClub.