Customers lack pensions knowledge

MPS are looking into how people could be encouraged to pay more attention to their pension pots and whether they are getting value for money.

A Work and Pensions Committee inquiry will consider whether the pensions industry provides sufficient transparency around charges, investment strategy and performance.

The inquiry will look at whether enough is being done to ensure people understand what they are being charged and why and that they can see how their money is being invested and how their investments are performing.

It will also look at whether people are engaged enough to use information about costs and investments to make informed choices about their pension savings.

Significant changes to the pensions landscape in recent years include millions of people being brought into workplace saving through automatic enrolment and the launch of the retirement freedoms giving people a wider range of options.

But the committee said there have also been broader concerns about low levels of customer engagement and understanding.

Key questions it will consider include whether the Government is doing enough to ensure that workplace pension savers get value for money and how people can be encouraged to engage more with their pension pots.