By John Reynolds on Tuesday 21 April 2020
The pension provider says the change will bring more clarity so members can better understand charges and costs.
PensionBee has launched the second iteration of its annual pension statement sent out to its members, which for the first time includes information about members' pounds and pence costs and information about charges.
PensionBee became the first UK pension provider to adopt simpler annual two-page design statements last year, as it looked to offer its members clearer and more concise statements.
The move followed the government's auto-enrolment (AE) review which found that less than 14 per cent of those polled understood their annual pension scheme.
Millions of pension statements are sent out every year.
The key change with the second iteration of PensionBee’s Simpler Annual Benefits Statement is that statements now include members' pounds and pence costs and information about charges. PensionBee says it's the first provider to do this.
In the previous iteration, fees were only displayed as a percentage, but now they can be read in pounds and pence so savers can see how much they're paying without needing to get out the calculator
PensionBee, which is led by CEO Romi Savova, said: "Standardising statements to include pounds and pence charging is an essential part of engaging members, empowering them to compare fees across all their pots.”
“This is even more essential as charges are unlikely to appear in the initial Pensions Dashboard data set, meaning it could be many years before people can significantly compare charges there."
“According to government guidance, trips to the post office should be avoided, and the dated paper-based business models of many pension businesses are being called into question.”
“We ask DWP to legislate to ensure that all providers send out digital-by-default, standardised, simpler annual statements including pounds and pence charging. No statement should be sent by post unless a member specifically requests it.”
“Transparency of pensions will lead to consumer empowerment and increased competition in the market. If consumers are more informed about costs and charges, in a clear and jargon-free way, there will be better retirement outcomes for everyone.”
The pensions and financial inclusion minister Guy Opperman officially launched the simplified annual statement in October 2018, in response to the government’s 2017 review of AE with a goal to “junk the jargon” and help people engage with their savings.