Aviva positions itself as financial “puzzle solver” as 69% suffer jargon confusion

Research by Aviva has revealed low levels of understanding of key terminology in financial services, especially amongst the younger population.

Demonstrating the challenge facing pensions marketers, the survey of the general public found that only 61% of adults aged between 18 and 24 had heard of the term pension.

Other pensions terms saw even lower recognition, with pension consolidation heard of by 22%, annuity by 17% and income drawdown by 10%.

The age group also showed low familiarity with other financial terms such as inflation (heard of by 57%) or contents insurance (25%).

While older age groups had better understanding of many terms, 69% of people across all age groups admitted to feeling puzzled by financial jargon.

Across the whole study, the terms pension, life insurance, interest rate and inflation were understood by 84%, 83%, 81% and 79% of people respectively.

The research came as Aviva looks to position itself as solving puzzles for customers with its new advert.

Phoebe Barter, Brand Director at Aviva, said: “We understand that financial matters can be puzzling and our research highlights exactly this. It’s easy to stick our heads in the sand and ignore something we find complex and confusing. But we also know that when things are resolved and clear, it’s a huge weight off our minds.

“At Aviva we want to help our customers engage with their finances so they really click into place. Whether people want to make sense of their pension pots or understand how much cover they need for their home or their family, that’s exactly what we’re here to do. We’re here to help solve customers’ concerns, so they can focus on what matters to them and not spend time feeling puzzled.”

The research surveyed 2000 members of the general public.