Consumers feel “disconnected” from pension providers, which they associate with uncertainty and wrongdoings, according to new analysis by the National Employment Savings Trust (Nest).
A new report by the non-departmental public body found that most savers do not trust pension providers and fear that bad practices and a lack of competencies could mean they lose their money.
It also found that savers want to know what happens to their money, whether it is safe and what they will get when they come to draw from their pension.
Tim Jones, chief executive of Nest, commented, “As an industry we are increasingly challenged with meeting the needs of this new and growing generation of savers and developing products that are aligned with what they want and need.
“Our research suggests that a key missing element is how we bring this new generation into a conversation that has previously excluded them.”
Nest said that it emerged from the findings that savers wanted more certainty and clearer information and want to have their fears and concerns addressed, so that the industry can design products that best suit them.
Jones added, “As an industry we need to find innovative ways of providing greater certainty for savers, but without high charges and without foregoing inflation-beating growth. We also need to find ways to help consumers feel they are at the heart of a debate that is about helping them achieve their retirement goals.
“Improving consumer confidence in saving for retirement explores what consumers think and feel about pensions, investment and long term saving, providing insight into how we may not only provide improved product solutions, but also influence their attitudes and behaviour to support better outcomes for all.”
A recent survey found that almost half of pension savers value ethics over return, with 70% thinking that pension providers should avoid investing in companies associated with unethical practices.
Photo: American Advisors Group via Flickr