Seventy-four per cent of defined contribution members are interested in comparing the performance of their pension scheme with others in the market, it has been revealed.
According to research by AllianceBernstein, interest in pension performance transparency is a key concern for those enrolled in DC pension schemes. The number of those interested in comparing their pension has risen. The last survey of this kind in 2016, found that 57 per cent of members were interested in the topic.
In addition, the age group where people found this most important was the 45-55-year olds, with 81 per cent interested in seeing how their pension provider compares to others. As retirement draws closer, interest spikes in how one’s pension provider stacks up against their rivals as savers want to ensure they will get the most from their pot.
The public’s general interest in the performance of their pension has also climbed since the previous survey. This year’s survey showed that 71 per cent of respondents are interested in seeing how their pension pot is changing in value, rising from 64 per cent from the previous survey. The rise in interest most likely reflects the rise in the amount the public is saving into their pension through auto-enrolment, AllianceBernstein reported.
Commenting, AllianceBernstein head of multi-asset solutions in EMEA, David Hutchins, said: “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.”
“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. Greater levels of scrutiny will help members assess the market easier, place the spotlight on those that are underperforming their peers and helping savers sort the wheat from the chaff, so they can make a more informed decision on who their investments are managed by.”