A new survey of financial advisers has found that the servicing of Pension Freedoms business is “well below expectations.”

Defaqto’s Pension Service Review reveals a mixed picture but with a decline in Pension Freedom servicing, seen as one of the most important areas for service by advisers.

It also found that the demise of annuities may have been “somewhat exaggerated, ” a view supported by L&G’s results today which showing annuity sales holding up and SIPPs still core business.

The annual Defaqto survey measured the relative importance to advisers of seven satisfaction categories.

Pension Freedom servicing was seen as the most important aspect of pension service but is performing “well below expectations,” said Defaqto.

Personal pensions, drawdown and self-invested personal pensions continue to dominate the most recommended products.

Defaqto said that as in 2016 and 2017, personal pensions, drawdown and SIPPs were the most recommended types of pension product and in the same order of preference.

Hybrid and blended solutions have become slightly more popular than last year and annuities remain at a “steady level” when compared to 2017, meaning their demise may have been “somewhat exaggerated.” said Defaqto,

The survey measured the relative importance of seven satisfaction categories and identified the advisers’ preferred providers of individual pension business.

Adviser Pension Ratings on Service 

Source: Defaqto

David Cartwright, head of Insight and Consulting for Wealth and Protection at Defaqto, said: “Overall satisfaction remains largely unchanged in comparison to 2017. However, there is still work for providers to do in some of the service categories when it comes to bridging the gaps between service and expectations.

“Results of the survey have shown that providers will need to consider the service they are offering and why advisers (or perhaps advisers’ clients) are not completely satisfied with how they are performing in certain areas.”