Exclusive: Pensions minister demands simpler workplace pension statements
Long, confusing workplace pension statements could be a thing of the past if a government initiative, set to be unveiled today, comes to fruition.
Pensions minister Guy Opperman wants pension providers to be clearer and more concise about savers’ pension prospects, and will today warn that he will legislate if he does not see change imminently.
Read more: What problems do savers face when transferring their pensions?
The Department for Work and Pensions (DWP) could even bring in measures which limit statements to two sides of A4 paper.
Opperman wants statements to tell savers how much money is in their pension pots, how much money they could have when they retire and what they can do to increase their retirement income.
“Pension statements are too long, too wordy, full of jargon and confuse savers. People don’t read them, or if they do they can’t make head nor tail of them.
“Simpler statements provide clear information that people will actually understand and this will encourage them to save more.
Read more: Whitehall pressed on pension superfunds regulation
“I want pensions schemes to drive forward real change quickly but, if necessary, I will consider regulation.”
“Savers who have more than one pension pot and receive more than one statement find it hard to compare them. Simpler statements will fix this,” he said.