Yesterday’s release of NEST Corporation’s phrasebook has won the approval of the National Association of Pension Funds (NAPF), but a pension and benefits communication specialist has heavily criticised the document.

This first version of the phrasebook was developed following research running over 14 months. It forms part of NEST’s work towards ensuring that it communicates effectively with stakeholders.

NAPF chief executive Joanne Segars welcomed the initiative, and said that pensions language is often ‘unnecessarily complicated’ and risks putting people off saving into a pension.

“Clear and easy to understand communication is essential to persuade people about the importance of saving for retirement. The NAPF has long emphasised this and, with its Pensions Quality Mark (PQM) initiative, has set out standards for good communication,” Segars said.

However, SHILLING Communication slammed the phrasebook, accusing NEST of ‘dumbing down’. Director Katie Frost said the report was “outdated”, and “a typical example of a Government organisation attempting to crack a nut with a JCB.”

“The introduction to the phrasebook alone sets the scene perfectly - it is patronising, basic and at least 15 years out of date. NEST seem to have focused on dumbing down to appeal to the lowest common denominator rather than using terms that will be familiar with ordinary working people. For example, why use the word ‘pot’ when people are used to ‘accounts’ for banking and saving? Yet change the word ‘employee’ but keep the word ‘Gilt’. It doesn’t make sense,” Frost said.

While acknowledging that NEST has “the right intention”, Frost said the execution was a disappointment and hoped that “the best is yet to come.”

“NEST should be thinking about segmentation and personalisation rather than defining a ‘comfortable retirement’ as ‘the little man lived happily ever after’. However, perhaps the biggest problem with the report is that NEST seem to have looked at words only rather than looking at the whole communication piece in context - something which is vital to engagement and effective member scheme communications,” Frost said.

In an emailed statement, NEST chief executive Tim Jones said that version one of the phrasebook was informed by “extensive desk research” and consultation with stakeholder groups from the industry and consumer representatives.

“We also thought about what words we may need to use and developed a ‘narrative’ to put those words into context to help us take the research forward,” Jones said.

Phrases were then tested in NEST’s target market over two stages of qualitative research, followed by quantitative research.

“Version one of our phrasebook reflects what people in our target audiences told us.

“We haven’t said we’ve got all the answers but this is a good starting point for further work. We hope our launch contributes to the drive to reduce jargon in the financial services world more generally, and we want to join with others to encourage consistency across the pensions landscape,” Jones said.

NEST is seeking feedback on the work so far, and has launched an online forum to gather responses.

The forum and phrasebook can be accessed here

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