A lack of information from providers is potentially preventing people from saving for their retirement, according to new research from Moneyhub.
Over two fifths (42%) of consumers said they do not find it easy to interact with their provider, with a quarter (25%) citing that the biggest reason for difficult communication is their provider not having an app. The lack of an app was also rated as more important than the ability to speak with someone.
More than a third (36%) of those aged 35-44 said too little information from their provider was putting them off adding to their pension or investments and over one in eight (13%) consumers do not know who their provider is.
Despite a push by the Financial Conduct Authority for financial services to demonstrate positive outcomes for consumers, less than a fifth (19%) of those surveyed felt that their provider has delivered on all four of the FCA’s Consumer Duty outcome areas.
A quarter (25%) felt their provider had failed to provide communications to make effective financial decisions, while 24% said their provider failed to offer good quality support and after-sales care. Just under a fifth (18%) said they believe their provider has failed to deliver transparent pricing and the ability to demonstrate value for money and a further 16% said their provider failed to offer suitable products and services to meet their needs.
Mark Horwood-James, managing director at Moneyhub Personal Finance Technology, said: “Consumers are saying loud and clear that pension and investment providers can be doing more to help them make better financial decisions.”
According to Horwood-James there is growing demand for technology from consumers. He believes that using solutions such as commercial pension dashboards and Open Finance will help providers to meet their customers’ needs.
He continued: “Apps and specifically the use of Open Banking and Open Finance technology can contribute to better financial wellness and encourage positive outcomes. The ability for consumers to see a holistic picture of their finances enables them to make decisions that can improve their long-term financial health.
“Pension and investment providers could have a huge impact in this area, creating brighter futures for their customers and their businesses.”
He added: “The UK Government’s new Smart Data sharing laws and Pensions Dashboard announcement, alongside the continued emergence of Open Finance, is accelerating the race to deliver customer-centric solutions. And the next few years will rapidly reveal who leads and who gets left behind.”
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