We speak your language
Financial jargon can be confusing and overwhelming. A new study (Aviva, 2022) has revealed that seven in 10 UK adults are puzzled by financial jargon.
Age gap
The research also found that those aged under 25 are least likely to feel puzzled by financial jargon, with around half (52%) of those aged 18 to 24 stating this, compared to 69% across all age groups. However, there may be an explanation as to why this age group are less confused by financial jargon â they simply might not have heard of certain financial products or terms. For example, less than two thirds of UK adults (61%) in this age group report hearing the term âpensionâ compared to 97% of those aged 55 and above. In contrast, 18 to 24-year-olds are the group most likely to be aware of the term âESG fundâ (Environmental, Social and Governance).
But even if you have heard a term, it doesnât necessarily show that you understand its meaning. Just 61% of people who are aware of an âESG fundâ feel confident of its meaning.
Lost in translation
One of the biggest challenges when it comes to financial jargon is that it often feels like a language unto itself. Even if youâre a skilled communicator in other areas, financial terminology may use specialist jargon that can leave you feeling lost.
Ultimately, itâs important to remember that financial jargon is a tool for communicating complex concepts and ideas. We can explain everything you need to know in plain English. Get in touch â whatever your age! (OUR A-Z HERE)
The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.