The FCA has found that about 63% of defined contribution pension holders only have low or moderate confidence in their provider.

Asked how much they trusted their provider, over a third (34%) of adults with a DC pension rated their satisfaction as low, while 29% said ‘moderate’.

Those who have retired had greater levels of trust than younger people still working. This reflected the low levels of engagement among those still at work. A further quarter (23%) of DC pension holders, including those who have retired, did not know enough about their provider to comment.

The survey was published in an FCA data bulletin. 

People who had retired and were still accumulating a pension had generally higher levels of satisfaction than those still working. A quarter (24%) of DC pension holders could not say whether they were satisfied or dissatisfied with their pension provider.

The FCA report stated: “Trust in DC pension providers seems to be associated with levels of confidence in managing money. Those who are highly confident in managing their money are twice as likely to trust in their DC pension provider than those who are less confident managing their money.

“Low levels of confidence with managing money also seems to be associated with low levels of trust in DC pension providers.

“Those who report a high level of knowledge about financial matters are three times as likely to have a high level of trust in their defined contribution pension provider than those with lower financial knowledge.”