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Workplace pensions ‘fail to meet disclosure rules’

Analysis of workplace pension schemes Data-Corporate-Finance-Business-Pen-Graph-Growth-700x450.jpg has found many default funds are failing to disclose their investment objectives to savers.

The Financial Times reports analysis by consultancy firm Cardano which reviewed 29 default funds and whether they were meeting rules on investor disclosure.

Cardano found 38 per cent of providers did not make clear what their investment objectives are, impacting eight million savers.

Almost two-thirds of funds reviewed had no clear performance objective.

The research also found no default fund provided a clear link between contributions and expected benefits at retirement, and many default funds failing to define “risk”.

Cardano head of defined contribution Ralph Frank says: “There is an urgent need for providers to make this basic information readily available, giving savers a clearer idea of what they need to do to reach their goal.

“Without it, there is a high risk individuals will have to work much longer than originally anticipated to get where they need to be financially.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Robert Milligan 10th July 2017 at 12:18 pm

    Auto enrolment!!! This is a scandal already happening!!! Most do not know the name of the provider, let alone the fund name, what its about is completely off the chart. Now you can take out up to £30,000 without advice!!! So what’s the point of Exams/ PI and regulation, The whole pension area should be dismantled and abolished

  2. Considering tag most going into work place schemes couldn’t give a toss about it, the biggest risk is that this is a non story.
    Most advised clients would struggle to name what the aims of their own funds are. They really don’t care as that is what they pay us for. It may come back to them at a review but two days later the info has left the memory bank again.
    As an industry we really need to get away from all this crap. People don’t need to know everything there is to know about their investment.

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