On the go: Eighty-seven per cent of employers are looking to review their pension provider in the next 12 months, according to new research from investment platform Smarterly.
The survey, which polled 250 human resources professionals working in businesses with a workforce of more than 300 employees, showed that 63 per cent of respondents want to see a new disrupter enter the pensions market.
The data also revealed that 65 per cent of employers do not believe pension providers are doing enough to offer new and progressive products for an ever-changing workforce, and customer service levels from existing pension providers have fallen significantly with little incentive to go above and beyond what is required.
Steve Watson, head of proposition at Smarterly, said: “Pensions legislation has changed dramatically in recent years, which combined with financial pressures has seen a move away from defined benefit schemes to defined contribution schemes. But the products themselves have remained the same and there is very little innovation in the market.
“With employers now legally obliged to enrol their employees into a pension scheme, existing providers are under very little pressure to innovate.
“They still seek to compete on cost, of course, but with a captive audience, providers see no need to design ground-breaking products or offer outstanding levels of service – they know that there is ample business out there to share around.”
