News - Financial jargon ‘prevents saving’
Posted on January 25, 2008 in the Finance insurance category
About 21% of people surveyed said they thought they would save more money if financial services companies were clearer in
communicating with them.
The research was carried out for the insurance industry’s Raising Standards Quality Mark Scheme, which aims to replace financial jargon with clear English.
It thinks less jargon would help to reduce Britain’s 27bn savings gap - the deficit between what people actually save and what they need to save for retirement.
Finance insurance zurich of the 2,500 people questioned said they would take more interest in their finances if they understood the information companies sent to them.
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 Jargon has played a major role in switching people off from money management
Martin Shaw
Raising Standards |
Nearly 40% said they
would take more time to read statements they received.
And 36% of people thought they would be more likely to shop around for a better deal if financial products were easier to insurance agent finance career change.
Martin Shaw, director of the Raising Standards Quality Mark Scheme, said:
“Our research shows that this is more than a simple exercise in customer
relations - jargon has played a major role in switching people off from money
management.
“Of course, clear information will not close the savings gap alone, and the
Association of British Insurers is continuing to work with the government and
regulator on improving the incentives to save.
“In the current climate, people need to be able to make informed decisions
and the industry’s Quality Mark helps the public do just that.”
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