Advisers say the simplest elements of pension illustration documents are still too confusing for a lot of clients.
One adviser described how he showed a client the classic 5-7-9% table projecting how much his pension could grow under different investment conditions. After some thought, the client said: "I'll have the 9% one, please." If clients struggle to understand this relatively simple concept, how will they understand the reams of literature the Financial Services Authority (FSA) insists providers send? This argument has been had before, but now, the Department for Work and Pensions (DWP) is suggesting total transparency is actually counterproductive in encouraging people to save. In it...
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