A lack of member understanding around defined benefit pensions is a ‘key concern’ for pension trustees and sponsors, according to a survey by Aon.

The poll of 239 trustees, sponsors and pensions managers took place during a recent Aon webinar on member options.

Aon senior partner Ben Roe said: “Following the introduction of pensions freedoms, clearly communicating member options at retirement is a major concern among trustees and sponsors. The poll on our recent webinar indicated that this is currently the key issue for two-thirds of respondents."

The poll also found that around 40 per cent of respondents were concerned about the impact the new flexibilities had on scheme administration and that nearly one-third of respondents were additionally worried about members receiving advice from unscrupulous IFAs.

These concerns are consistent with a survey carried out by Aon earlier this year which showed a trend of schemes making online tools available to members to help with their decision making or by providing access to reputable IFA advice. Almost one-third of schemes are looking to have this level of support available to members within the next 12-18 months.

“It’s also evident from this latest poll that trustees and sponsors are grappling with how best to support DB members with their decision making at retirement. This is not surprising given the range of options now available to members and high-profile cases in the press of poor-quality IFA advice and high levels of charges.

“In our experience, this is driving more trustees and employers both to review their communication material to members and to go through a robust selection process to find a good quality reputable IFA who they are comfortable for their members to see.”

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