Savers will have a much clearer picture of their pension pots from next year, the Government has said.
Schemes will be required to issue their members with two-page documents highlighting in simple terms key information including the size of the saver’s workplace pension pot and a forecast for their retirement.
A consultation will take place into the exact regulations, with the proposed changes set to come into effect in April 2022.
The initial focus will be on savings from automatic enrolment, with a view to eventually improving simplicity across all schemes.
Pensions minister Guy Opperman said: “It’s clear the status quo is not working, with savers left puzzled by the complex, sprawling, jargon-filled statements commonly used by the pensions industry.
“Simpler statements will set a new standard for how pension companies communicate with their members.”