Pension Passport users are 10 times more likely to use Pension Wise when making retirement decisions, new research has revealed.

In a recent trial conducted by the Behavioural Insights Team (BIT) for Pension Wise with LV=, it was concluded that the use of simpler, clearer communications with documents such as the Pension Passport, will enable savers to make better decisions about how and when to draw on their retirement savings.

Using customers approaching retirement, the study found that receivers of the Pension Passport were 10 times more likely to use free Pension Wise guidance when making retirement decisions in comparison to those who did not receive the pension document.

In comparison, it was found that those in the control group who received the current wakeup packs provided too much information, which led to difficulties in comprehension and lessened their ability to make confident decisions regarding their pension pots.

Furthermore, the research highlighted that providing both an online and phone service is an effective way to encourage engagement.

The Pension Passport was originally proposed in 2009 by the lobby group Pensions Income Choice Association comprising of LV=, Just, Hargreaves Lansdown and Retirement Advantage. The document would show all pension pots in one place and contain the condensed, concise information savers would need to access open market retirement product options, as well as encouraging communications with Pension Wise as the next step.

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