A third (33%) of employer respondents report an increase in complaints from employees about their pension fund performance in the last two years, according to research by Portus Consulting.
Its survey of 103 UK-based HR professionals and 1,043 UK employees, also found that 35% of employer respondents are concerned about possible regulatory or compliance issues for their organisation as a result of pension complaints.
The research also found:
- 28% of employer respondents report an increase in enquiries from employees about their pension scheme over the last two years.
- 19% of employee respondents have contacted their employer over the past two years about pension scheme issues.
- 4% of employee respondents have complained about the performance of their savings in their pension scheme in the past two years.
- 48% of employee respondents believe the retirement planning services provided by their employer are effective, and 15% feel these services are disappointing.
Steve Watson (pictured), commercial director at Portus Consulting, said: “HR departments have to some extent been put in the frontline of the push to tackle the UK’s retirement savings crisis and have played a major role in helping to deliver workplace auto-enrolment.
“There is a price for success, unfortunately, and that is a rise in complaints and concern about pension scheme performance from employees which could lead to major problems with compliance and regulatory issues.
“Pension schemes and employee benefits in general are a major part of the total reward package for staff and need to be clearly communicated to employees so that they can plan for their retirement and see the benefits of their own and their employers’ investment.”