However, they need to do more to make up for shortfalls and to start asking more questions over the make-up of their pension funds and understand how the money may grow over time.
He said: “We’ve entered an age of responsibility, where more and more people have now become investors, responsible for their own financial security. Looking under the hood of investment products and asking questions like: ‘How much of my assets are invested in stock markets? How much in bonds?’ is vital.
“The industry needs to step up and do better to help investors be realistic here, getting past the jargon and sales guff to actually help produce tools that help savers understand how their money may grow, and the impact of things like inflation and fees over the long term.”
The report also touched on inconsistencies in projections quoted on pension statements from different providers, which can lead to confusion and difficulties making financial plans.
As reported in FTAdviser earlier this month, independent trustee and governance services provider PTL warned that outdated DC models could lead to an impoverished retirement for many people.
Calling it a "catastrophe" in the making, PTL claimed most workplace pension plans were being built based on defined contribution adequacy models that were outdated and overlooking some "major factors".
simoney.kyriakou@ft.com
