Complaints about pensions fell by 27 per cent over the year to 31 March 2010, according to the Financial Ombudsman.

The Ombudsman's Annual Report 2009/2010 shows that 14 per cent of complaints submitted related to investments and pensions in the last year.

Specific complaints about pensions dropped, however, from 4,940 at year end 31 March 2009, to 3,594 at year end 31 March 2010.

Complaints relating to personal pensions fell by 20 per cent, from 2,173 to 1,727, and about annuities by 18 per cent, from 611 to 501. SERPS complaints declined by a huge 62 per cent (from 1,468 to 560), and about free standing additional voluntary contributions from 115 to 99.

However, complaints relating to small self-administered schemes (SSAS) and self-invested personal pensions (SIPP) increased from 373 to 475 in the last year, and about income drawdown from 130 to 158.

When it came to the parties the complaints were about, 48 per cent related to life insurance and investment product providers, 28 per cent to IFAs, ten per cent to banks and 14 per cent to other parties, including building societies and stockbrokers.

The Review said the Ombudsman had continued to receive pension-related complains about switching - something the Financial Services Authority (FSA) has sunk its teeth into on a few occasions recently.

The economic environment has also been attributed with affecting the type of pension-related complaints the Ombudsman received - with the fall in the value of investments linked to commercial property cited as an example of showing that many complaints were because a consumer did not fully understand investment risk, and could not afford to take risk with their pension funds.

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