The other day, I got chatting to someone in the office where I work. I don't know her particularly well, so it was good to get to know her a little more. She asked what I did, which is probably how we ended up talking about pensions. She mentioned that she has five, and, well, I can’t quite help myself.

Before long, I was explaining that it’s worth knowing what each one charges, where the money is invested and whether there might be a benefit to bringing some of them together. And, just as importantly, whether any of them have valuable benefits that you wouldn’t want to lose. Of course, I offered to look at them. Then she mentioned that her husband had pensions too, so knowing me, I’ll probably end up offering to look at his as well.

I think it’s because I know how much difference it can make to have your pensions working for you and the future you want. You work hard to put that money aside, yet so many people don’t really understand what they have or feel confident about it. Afterwards, I kept thinking: why is it so difficult to find out what’s happening to your own money?

And before anyone says, “But it’s all on the pension statement”, have you actually seen those statements? If I didn’t work in this industry, I'd most likely open the envelope, look at the number, flick through a few pages and put it somewhere safe. Somewhere so safe that I wouldn’t see it again until the next statement arrived.

When you’re faced with pages of unfamiliar terms, tables and explanations that somehow need their own explanations, where do you even start? You might be able to see what your pension is worth, but that doesn’t necessarily tell you what you’re paying, where your money is invested or what happens when you want to start using it. And yes, you could ring the provider, but that can feel daunting too. Especially if you’re worried the answer will involve more words you don’t understand, and you’ll end up saying, “Right, thank you”, while being absolutely none the wiser.

There should be some sort of simple, clearly written summary. One page, at the front, telling you what the ongoing charges are, as a percentage and in pounds; where your money is invested and what that means; what other investment choices are available; whether there are any valuable guarantees or special benefits; and how you can take your money when you retire, including any restrictions or costs. The fuller detail could still be there for anyone who needs it. But please, give people somewhere useful to start.

If you have five pensions, you could put those five summaries next to each other and begin to see the differences. That wouldn’t make every decision straightforward. A cheaper pension isn’t automatically a better one, and bringing pensions together isn’t always the right thing to do. But you’d have a starting point. You’d know what questions to ask, rather than looking at a pile of paperwork and deciding you’ll deal with it another day.

Because people work so damn hard. They put money aside month after month, often for decades, for a future they’re trying to look after. Then that money sits somewhere they don’t really understand. They might not know what it costs, what it’s invested in or what they’ll eventually be able to do with it. And when the information feels overwhelming, it’s easy to leave it alone because you simply don’t know where to begin.

I think that takes away some of your confidence and control over money that belongs to you. I know not everyone likes the word “control”, but you should have a say in where your money is invested. And to make an informed choice, you need to understand your options and how they fit with what you want for your future. I don’t expect everyone to become a pension expert, but you should be able to understand the basics of what you own, without feeling embarrassed or needing someone to translate every other sentence.

There’s nothing stupid about not understanding pension jargon. If I didn’t work in the industry, I wouldn’t understand it either. Most people have never been taught it, and it’s hardly something that comes up in everyday conversation. Nor should you have to learn an industry’s language just to understand your own money. If someone reads an explanation and still has no idea what it means, we need to explain it more clearly, rather than leave them feeling they’re the problem. Use ordinary words. Explain things properly. It’s ridiculous that something so important is made so difficult to understand.

It’s your money. You’ve worked hard for it, and you deserve to understand what’s happening to it. You should be able to ask a question and get an answer that makes sense, without feeling awkward or apologising for not knowing the terminology. Clear explanations shouldn’t be something you have to fight for. They should be the starting point. 🩷