Following on from our story of 2 February 2002 'Pension Shock On The Way' the Government's test results are in and they failed!
Apparently, statements were sent out showing what people would have to live on from their State and private pensions at retirement, in real money terms.
Due to the public generally not saving enough for retirement, the Government thought that if people saw just how small their pension pots were going to be, they would be spurred into action to increase their savings.
The results showed that only 10% of people who received statements acted on them, meaning that 90% did nothing!
Our opinion at is that pension statements are not understandable by the majority of people and, if you don't understand what you are being told, how can you know if it is wrong?
Statements and information about financial products need to be simpler and explained in plain English. We think that examples would help, rather than reams of figures.
How would you like to see information set out, so that it is understandable?
Contact us with your views.