In the year that millions will start saving for their retirement for the first time, new research by NEST shows that very few people think pensions are 'straightforward' (6 per cent), 'easy to understand' (4 per cent), 'simple' (3 per cent), 'interesting' (5 per cent) or 'engaging' (2 per cent).

Only one in seven respondents (15 per cent) finds the language used to describe pensions straightforward and easy to understand and only one in 14 (7 per cent) thinks information from pension providers is better quality than other types of financial information they have seen.

The words people more strongly associate with pensions are 'confusing', 'complicated' 'boring', 'difficult' and 'off-putting'.

The research results, released by NEST alongside a new version of its jargon-busting phrasebook, also shows that more than half (57 per cent) say that sometimes pensions seem so complicated they can’t understand the best options available, while one in three people (29 per cent of all respondents and 39 per cent of NEST’s target group) are putting off thinking about saving for retirement because they find pensions confusing.

NEST Chief Executive Tim Jones says:

'Pension jargon could be damaging people's chances of building a better income in retirement. As millions of people are due to start saving for their retirement for the first time through automatic enrolment, NEST’s research shows that getting the language right is a challenge all pension providers will need to tackle.

'The latest version of NEST's phrasebook includes new jargon-busting terms we've tested with our likely members and their employers to help make pensions easier to understand. We’re committed to talking about pensions in language that people understand and will continue to share our work in this important area as it develops further.'

Jargon 'fun' on YouTube

NEST people and a number of journalists have taken part in some light-hearted videos on pension jargon terms, along with more serious comments, which are now live on NEST’s YouTube channel: http://bit.ly/NESTphrasebookvideofun

What do journalists and stakeholders say about NEST's phrasebook? Read some of our 'book reviews'.

Nick Timmins, Policy Commentator and Analyst, Financial Times: 'If you only read one book about pensions, read this!'

Doug Taylor, Financial Services Chief Advocate, Which?: 'Unintelligible jargon puts people off financial products and NEST is doing a great job to help people understand what pensions are really about and how they work. All of the pensions industry should be following this lead and making pensions as simple to understand as possible.'

Maggie Craig, Director of Financial Conduct Regulation, Association of British Insurers: 
'NEST's excellent phrasebook helps pave the way to a 'new normal' where people chat about their pension around the water cooler. It is exactly what we need to get the year of auto-enrolment off to a good start'.

Stephanie Hawthorne, Editor, Pensions World: 'Parlez-vous pensions? It’s no longer a ‘foreign’ language! Congratulations to the NEST team who have translated the pensions legalese and demystified the jargon that leaves so many Britons bamboozled and without an adequate retirement income.'

David Yeandle OBE, Director, Government Relations, European Employers Group: 'Very helpful, probably the most effective pensions jargon buster yet produced.'

Andrew Oxlade, Editor, This is Money.co.uk:  'You could be forgiven for thinking the pensions industry actually enjoyed developing a language few could understand, expecting savers to just cough up their contributions and shut up. Perish the thought anyone would want to understand what happened to their money. But now savers could do exactly that with this secret weapon at their fingertips: a codebook that deciphers the lot. It's simple, concise and accessible. Well done NEST'.

Wendy van den Hende, Chief Executive, PFEG: 'Personal Finance Education Group wants all young people to leave school able to manage their money. NEST's approach in making technical language easy to understand will be a great help in encouraging them to plan and save for the future - hopefully others in the finance sector will follow NEST's example.'

Becky Barrow, Business Correspondent, Daily Mail:  'The perfect cure for the headache that impenetrable pensions language always gives people.'

Karen Thompson, Associate Director of Policy, Research, and Strategic Visibility, Chartered Institute of Payroll Professionals (CIPP): 'This is a fantastic dictionary to understanding pension language whether a layman or a professional; a must have in the bookcase.'

Tom Boardman, Trustee Member, NEST: 'As someone who has been involved with pensions for nearly 40 years I applaud the work of my colleagues at NEST in creating the latest phrasebook. Communicating in language that pension savers can understand is critical to regain their confidence and encourage them to save more.'

Malcolm McLean, Consultant, Barnett Waddingham: 'I would strongly commend the NEST phrasebook as a plain English guide to many of the less understandable pension expressions.'

Charles Cotton, Public Policy Adviser, Reward, Chartered Institute of Personnel and Development (CIPD): 'The NEST phrasebook helps throw off the complex, jargon-ridden language that has been used to shroud pensions for far too long.'

Gillian Econopouly, Head of Public Policy, Recruitment and Employment Confederation (REC): 'Employers and individuals alike are often put off learning more about saving for retirement because they do not ‘speak pensions’. This helpful guide from NEST - along with their commitment to use transparent, plain English – is a vital tool in decoding the world of pensions and enabling people to make the best decisions for themselves and their businesses.'

Follow more pension jargon chat on Twitter:

Tweet about pension jargon with the hashtag: #NESTphrasebook . Follow @NESTInsider for updates.

Findings from the NEST/YouGov research - summary

• Hardly anyone thinks pensions are 'straightforward' (6 per cent), 'easy to understand' (4 per cent), 'simple' (3 per cent), 'interesting' (5 per cent) or 'engaging' (2 per cent). On the other hand significant numbers think pensions are 'boring' (17 per cent), 'difficult' (29 per cent) or 'off putting' (28 per cent of those surveyed and 40 per cent of NEST’s target group)
• Only 15 per cent agree that they find the language used to describe pensions straightforward and easy to understand and only 8 per cent agree that information from pension providers is generally clear and engaging
• 1 in 2 people find pensions confusing (48 per cent) and complicated (51 per cent)
• 1 in 3 people (29 per cent all respondents and 39 per cent of NEST’s target group) are put off thinking about saving for retirement because they find pensions confusing
• 50 per cent of people (and 67 per cent of NEST's target group) say they find pensions harder to understand than other types of financial products. Only 5 per cent of all respondents say they find pensions easier to understand
• Very few (7 per cent) think information from pension providers is better than other types of financial information they have seen whereas 1 in 3 (30 per cent of all respondents and 46 per cent of NEST's target group) think it's worse
• 57 per cent agree that ‘sometimes pensions seem so complicated I cannot really understand the best options available'

Background on research methodology

NEST/YouGov online survey conducted between 3 and 5 January 2012. 1,985 GB adults were interviewed and results are weighted to be representative of the adult population. Of those interviewed, 245 (weighted) were identified as eligible for automatic enrolment and with no pension savings and therefore in NEST’s target group.

NOTES FOR EDITORS

Download the NEST phrasebook v2.0 from our website

Further information about NEST www.nestpensions.org.uk

• For our key facts booklet and other publications click here

For more information on the Government's planned changes to pensions, go to http://www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/