The research, published by the Financial Services Compensation Scheme, says pension providers would see “reputational benefits” from promoting these protection measures more prominently.
The research, undertaken by Populus, found t 29 per cent of people with a pension would invest more if they knew that their pension fund was fully protected by FSCS.
On average, each person within this group would invest a further £1,493 each year. Of those who said they would not invest more, the most common reason was that they do not have any spare money to put into their pension fund.
A total of eight out of 10 consumer says they would feel “more reassured” by a pension provider that communicates the fact that its products are FSCS-protected.
Two-thirds of those surveyed (66 per cent) said this information should be on annual statements, while more than one in three (37 per cent) said it should be communicated through employers, or the employers HR departments.
FSCS chief executive Mark Neale says: “We have seen with our work in the deposit sector just how important FSCS protection is in reassuring consumers and increasing their trust in financial institutions.
“This research suggests that more prominent promotion of FSCS can have a similar impact in benefiting both consumers and providers in the pension sector.
“People will save more if they are confident their pension fund is safe and firms in turn will see reputational benefits if they prominently promote the available protection.”
In March 2018 the FSCS launched a working group of pension providers and advisers to develop an industry best practice standard for disclosure.
This group will offer a benchmark on how life and pension product providers convey information about FSCS to consumers.
