Two-thirds of pension savers have no idea who manages their pension in an alarming “understanding gap”, according to new research.
The number rises to four-fifths of people aged over 65.
Just one in 20 pension savers over-65 said they knew “a great deal” about who manages their pension.
The research from public relations agency WA Communications revealed that consumers are under-informed when it comes to knowing how their pensions and investments are allocated, while nearly two-thirds of adults cannot tell different financial products apart.
Cat Ommanney, head of financial services at WA Communications, said: “Our research paints a stark lack of knowledge when it comes to consumers’ understanding of how their money is being managed, with pensions apparently a mystery to most.”
Of note to Financial Planners is the fact that the same lack of awareness, although less dramatically, was echoed when it comes to people’s investments.
Two-fifths of respondents admitted to knowing very little about where the money in their investment portfolio is invested and the figure climbed to nearly half for women.
Ms Ommanney said: “Although we were heartened to note that people are better engaged with their investments, the fact that nearly half of women don’t know what they are investing in should speak volumes to asset managers and financial advisers.”
The research also looked at consumers’ attitudes to the number of financial products on the market.
Two-thirds surveyed said that the number of financial products makes it difficult to tell them apart, with nearly a quarter of those aged 25-34 strongly agreeing that they are confused by the number of offerings available.
Ms Ommanney said: “While the financial services landscape is increasingly crowded, it appears that there exists an understanding gulf between firms and their target audiences. Rather than simply launching new products to market, it’s time for companies to invest in better communication, closing the understanding gap and creating an informed and empowered public.”
• WA Communications surveyed more than 2,000 adults in October this year.
