FT Adviser (10/12/2018) – Research has revealed 49 per cent of consumers do not think the Financial Services Compensation Scheme (FSCS) applies to pension-related issues.
The FSCS conducted research to establish how aware the public was about their rights to redress in the event of an issue over their pensions.
Populus, which undertook the research on behalf of the FSCS, found that only 4 per cent of 2,067 respondents were aware that the FSCS protects all of a pension directly managed under a life insurance contract.
Confusions also reigns in relation to the level of protection provided by the scheme if someone withdraws their pension fund and places it elsewhere.
Just 5 per cent are aware that up to £50,000 is protected, and the same proportion recognised that annuities attract unlimited levels of protection.
Conversely, 78 per cent of consumers said they would have a higher opinion of pension providers that emphasise FSCS protection, with the same proportion of respondents saying they would be more likely to choose a provider that promotes this protection over one that does not.
Ricky Chan, director at IFS Wealth & Pensions, said: “It is understandable that the FCSC finds so few people are aware of the pension issue, far more time and space is given to fraud. This is quite right, given the potential for loss.
“While this might not seem a priority, the FSCS is nonetheless doing the right thing by promoting its protection for pension holders.”
Full article link: https://www.ftadviser.com/pensions/2018/12/10/half-of-savers-clueless-about-compensation-rights/
