Advisers back pension statement regulation

“Self-invested personal pensions can be more complex, with some holding more exotic and illiquid investments, but it could still be possible.”

Mr Morris said standardisation needed to cover charges disclosure too as these varied from one provider to the next.

Mr Morris said: “We definitely need to see clarity when it comes to charges, as well as more standardisation. 

“The Mifid II charges vary greatly from one provider to another. This becomes a real headache when you have clients with different plans with different providers.”

Various pension providers have also shown their support for shorter statements.

Andrew Tully, technical director at Canada Life, said the new layout should be similar to a bank statement.

Mr Tully said: “This would include ‘starting value’ at the beginning of the year; any deductions throughout the year (eg, charges, payments out); additions through the year (eg, payments in); investment gain/loss over year; and ‘end of year value’. This should all be shown in pounds and pence.”

He added that both workplace and retail pensions should be presented in the same way although some additional information may be needed for personal pensions.

Mr Tully said: “Some schemes are more complicated. The general concept/info/layout should be the same, but there may need to be some additional information if there are more esoteric investments for example.”

Pete Glancy, head of policy at Scottish Widows, said the industry had done a lot in recent years to make statements simpler but had not done it in a way which was consistent across providers.

He also said simpler statements should be included as part of the pensions dashboard.

Mr Glancy said: “The pensions dashboard will be the one place an individual will go to look at multiple pots at one time and the front page will probably show you the value of these pots in aggregation.

“A good place to build simpler statements would be in the dashboard eco-system, so that when an individual clicks on one of the pots their two page statement comes up and provides them with all the information that they need to know.”

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