Analysis of workplace pension schemes 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.”