Consumer confusion over financial terms means millions of people may be taking out policies without completely understanding what they cover or offer, Aviva has warned.
According to the firm, about 43% of UK adults could identify the capital of Peru but only half that amount could identify the correct definition of a defined contribution pension (22%), income drawdown (22%) or an enhanced annuity (16%). There was also a disconnect between those who said they understood pension terms and the proportion who could identify the correct definitions. More than half (53%) of respondents said they knew what an annuity was, but more than a quarter of those (27%) chose the wrong definition. More worryingly, two in five (41%) said they had ignored information g...
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