Employees may fail to make sufficient provision for retirement because they do not understand much of the jargon attached to pensions. Just 20% of the UK population claimed to understand terms such as defined benefit and defined contribution, according to research by JP Morgan Invest.
More than a quarter, however, believed that the words CD and DVD also related to pensions – 27% and 31% respectively. Almost half (46%) blamed a lack of understanding for their failure to save for the future. Adults over the age of 65 years were the most likely to understand pensions-related terms. For more information email email@example.com