Editorial: Last Monday a debate took place in the House of Commons after campaign group Women Against State Pension Inequality had handed over a petition asking for transitional arrangements.
Women born in the 1950s are most affected by the two rises in state pension age. Waspi has been saying the rises were not communicated properly and that women were not left enough time to prepare for them.
During the debate, Scottish National Party MP Ian Blackford asked how the public could have confidence in the Department for Work and Pensions' ability, “given that it has failed so spectacularly to communicate and to deliver fairness”, and Helen Jones, Labour MP, later said in Westminster Hall that the government had failed to communicate with women successfully, accusing it of mis-selling.
Illustration by Ben Jennings
Pensions are a complex subject matter but affect everyone at some point. The ongoing discussion about state pension for 1950s-born women shows communication is pivotal, and most trustees and providers will be aware of this – certainly since last April.
The introduction of freedom and choice has made the need for communication even more acute than before.
The Pensions and Lifetime Savings Association’s head of research and policy Jackie Wells noted recently that many people taking part in the PLSA’s survey on the freedoms might think they have bought an income product but have actually gone into drawdown – being apparently unable to distinguish between drawdown and annuities.
The scope for misunderstanding and mis-selling is huge under the new freedoms, and the legal pitfalls manifold. The blurring of the line between guidance and advice does not help either.
But timely and engaging communication with members can make a big difference to outcomes. The Scottish Power scheme recently managed to convince a tenth of its money purchase section members to increase their pension contributions when it started using an online portal (see our story on Scottish Power).
Trustees and providers can use their power to help members help themselves by giving them relevant and accurate information on their pensions, in a format that is engaging and easy to understand. Let’s hope the government will do the same in future.
Sandra Wolf is editor at Pensions Expert. You can follow her on Twitter @SandraCWK and the team @pensions_expert.
