Group notes rise in pension complaints

03/07/2009

The number of people making complaints about their pensions is rising, an annual report has suggested.

Just over 7,700 complaints were dealt with by the Pensions Advisory Service (TPAS) over the year to March 2009, an increase of ten per cent from the 12 months previous.

Errors and mistakes over how big a pensions lump sum was, along with admin failures following the takeover of a scheme, both contributed towards the total.

A sharp rise in complaints over private pension plans was noted over the year - while complaints about workplace pension schemes actually fell by two per cent.

The economic downturn was partly blamed by TPAS for the increase.

"Many savers had experienced significant reductions in the value of their pension savings from continuing stock market falls and delays in obtaining an annuity quote or award often meant a further reduction in the pension eventually secured," chief executive Malcolm McLean said.

The majority of pension fund investments are in stocks.

However, the markets suffered a peak-to-trough fall of around 50 per cent when the credit crunch was at its worst.

Tags; Current UK Economy, Retirement Money Problems,

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