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Pension providers’ Freedoms servicing levels fall short

4 March 2018

Pension freedom servicing is top of the list of importance for advisers, but provider service levels are falling short of their expectations, according to new research published by Defaqto.

Defaqto’s service satisfaction survey, which asked advisers to rate pension providers across seven categories, ranked “pension freedom servicing” and “product and proposition” the most important aspects of service.

While advisers ranked product and proposition as “exceeding” their satisfaction levels, they found “pension freedom servicing” fell short of their satisfaction experience. Existing business administration and provider staff also fell short, the findings revealed.

Personal pension, drawdown and SIPP are the three most recommended types of pension products. As drawdown is so highly recommended, it is not surprising that pension freedoms rate highly on the most important satisfaction category, said Defaqto.

The findings should serve as a reminder to providers to focus on adviser satisfaction when reviewing their propositions and the delivery of those, the financial information firm added.

David Cartwright, head of insight and consulting for wealth and protection at Defaqto, said: “Getting pension freedom servicing right has to be the key takeaway from the results of this year’s survey. With the pension freedoms coming up to 2 years old in April 2018, it is not surprising that this is now the number one most important aspect for advisers so providers need to get the communication right.

“Providers should consider all elements of service and allocate resource where appropriate to avoid dissatisfaction from their customer base which may adversely affect the adviser’s product selection.”

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