Pension savers want more transparency about how their company pension is performing, according to new research.
This research found seven out of 10 savers (71 per cent) enrolled into DC schemes are interested in how their pension was performing, and almost three quarters (74 per cent) want greater transparency on how this compares to other pensions.
The survey, by AllianceBernstein, found that these figures had jumped significantly. Similar research in 2016 found only 57 per cent of respondents said they were interested in how their pension provider compared to others.
Not surprisingly, interest was highest among the 45-55 year age group, with eight out of 10 (81 per cent) of respondents saying would like information on how their pension provider compares to others.
This is the age they people are often looking to maximise returns in the final decades of their working life and need to ensure they are getting the best returns possible from their pot.
AllianceBernstein says these results reflect greater engagement with company pensions as a result of auto-enrolment.
Alliance Bernstein’s head of multi asset solutions David Hutchins says: “As more of individuals’ base salary goes directly into their pension so it’s understandable that savers are paying more attention to performance; they want to know they are getting the best return.
“Greater transparency will help ensure that all pension funds are run efficiently as it will lead to greater accountability of the managers.”
He adds: “The public’s agenda also ties with the Pension Policy Institute’s recent report, commissioned by AB, which called for clearer investment objectives and more transparency.”
He says greater levels of scrutiny will help members assess the market easier, place the spotlight on those that are underperforming their peers, and help savers – and advisers – make more informed decision on who their investments are managed by.
