• Clear up the confusion surrounding the Lifetime ISA by restating its purpose and value. • Reconsider its opposition to auto-enrolment for the self-employed, and follow through with a proposal to view accountancy software providers as the ‘employer’. • Explore options for a Pensions Passport system that would enable the self-employed to carry over a pension from previous employment. • Pilot an auto- escalation scheme to boost saving rates among the self-employed • Create a roadmap for turning the Pensions Dashboard into a comprehensive Money Dashboard. • Task the new single financial guidance body with offering both guidance and advice on pensions • Consider launching sidecar products that combine a short-term savings account with a long-term pensions account • Extend eligibility of the Lifetime ISA to older savers, beginning by moving the age threshold from 40 to 50. • Present the self-employed with an IP insurance policy option when they complete their self-assessment tax return. • Introduce auto protection rules that default savers onto a drawdown scheme during retirement.
The full report is available here
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Pensions industry makes thousands of language changes to simplify retirement choices 20 April 2018
Following a two-year industry initiative to make pensions language simpler, clearer and more consistent – the Association of British Insurers (ABI) reports that thousands of changes have been made to consumer materials.
The improvements will make it easier for consumers to understand their options at retirement say the ABI, particularly in the wake of new and sometimes confusing options arising from pension freedoms.
Changes made by ABI members include: • Changing thousands of written documents to align with the ABI’s simplified terminology (see below), with one firm changing 800 documents alone. • Softening language that could worry consumers. For example, changing “ We have some warnings we need to give you” to “ We want to help you make sure you’re doing the right thing”. • Working with the Plain English Campaign to initiate the training of all customer facing staff, with thousands already completing in-depth courses. • Commissioning customer research to align simple language in a way that resonates with the consumers they serve. • Initiating engagement with customers up to 5 years before their set retirement date, rather than six weeks before, with one firm sending 4,000 simpler letters every month. • Replacing jargon and unnecessary technical language with visual metaphors and bespoke animations. One firm now uses an apple tree as a metaphor for a growing pension pot and withdrawal options. The changes form part of ‘ Making Retirement Choices Clear’ – an ABI-led initiative focused on simplifying the language used to describe the many options available to consumers at their point of retirement. They will be visible to customers through a number of engagements, including written communications, web pages and in the language used in conversations over the phone. Consumers approaching their retirement should now be presented with simpler documents and information that will make their decision-making process a lot smoother, less daunting and more personalised – helping to create better retirement outcomes for all.
For further information visit the ABI website.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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