Every industry has its own jargon – words and phrases that can seem confusing to outsiders. The world of finance is no exception. In a recent survey¹, less than a quarter of British adults say they know what a defined contribution pension is, while 26% could correctly explain how the offside rule works in football.
Not understanding the terminology used in communications could mean that people are taking out the wrong policy, or starting a financial plan that isn’t right for their needs. Two in five UK adults say they have ignored financial information sent to them. Some people confess to having lost money because they ignored letters and circulars, or missed important changes to their policy, because they found the information they received too hard to understand.
Taking professional financial advice can make the situation and your options clear. This can be particularly important when it comes to making life’s big financial decisions, like getting the right mortgage, choosing the most suitable investments, or planning and taking an income in retirement.
How advisers can help
Independent financial advisers know that many words, phrases and terms can be unfamiliar to people. They will be able to explain things in a down-to-earth way using plain English, highlighting all the key points you need to be aware of. But more importantly, they will take the time to understand your financial situation and what your goals are, and can help you plan for the important financial stages in life. They know what’s happening in the marketplace and can advise on the right plans, policies and investments to meet your needs.
If you’ve found yourself confused by financial jargon and could use some practical help, please contact us.
1 Aviva, February 2017