Flexi-access drawdown is among the phrases that should be confined to the scrap heap to make pensions clearer for consumers, the ABI said last month, as it launched proposals to make language easier to understand.

Pete Matthew CFPTM, the MD at Jacksons Wealth Management in Cornwall, said the ABI’s idea seemed like a step in the right direction.

Mr Matthew, also a Chartered Financial Planner, has previously called for jargon to be made ‘illegal’.

The founder of the Meaningful Money website, whose podcasting show has been downloaded over 350,000 times, said: “The problem is, as an industry we like to name things, so taking a flexible retirement income becomes Flexi-Access Drawdown.

“We're used to it, but the public is confused. I know, because I have spent the last six years explaining this stuff to the public on MeaningfulMoney.

“I don't see why we can't have both, so Flexi-Access Drawdown could become a Flexible Retirement Income plan.

“A Lifetime Annuity could become a Guaranteed Lifetime Income plan or something similar. It would be easy for us to make the switch to calling things FRIs and GLIs, but at least when we explain things to clients, we wouldn't have to identify the acronym AND then rehash it into everyday speak.”

Uncrystallised pension funds lump sum is another on the ABI list for the chop in a bid to eradicate jargon.

Mr Matthew added: “I think my favourite jargon term of the moment is Uncrystallised Funds Pension Lump Sum, which I have heard variously called UfflePuffle (I kid you not) and UfPlus. 'A series of lump sums' is surely better?”

Nathan Long, senior pension analyst at Hargreaves Lansdown, said: “A guide to pension language can hopefully consign the use of terms like UFPLS, decumulation and benefit crystallisation event to the scrap heap.

“Focusing on improving consumer understanding will help people make confident, appropriate and informed decisions when it comes to choosing what to do when drawing from their pension.

“Using words everyone can understand, even if they don’t have a PHD in pensions, is crucial to improving understanding and will also help to build trust with pension providers.”

Dr Yvonne Braun, ABI director of policy, long term savings and protection, said: “Customers who are engaged in their pension are better able to make decisions that suit their individual circumstances so it’s important that we make these options as clear and comparable as possible.”

Last week, a study showed Shakespeare’s phrases are better understood by the public than financial jargon – despite being 400 years old.

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