Pension firms must do more for customers in older pensions and fund savings, according to the financial services regulator.
In a multi-firm review of consumer duty price and value practices, the Financial Conduct Authority (FCA) found that people holding legacy pension products, now closed to new savers, could be receiving poorer value than those in newer ones.
Complex charging structures, older product design and weaknesses in firms’ data meant some pension savers are not getting as much value as they could, the FCA said.
Charlotte Clark, director of cross-cutting policy and strategy at the FCA, explained: “Consumers in older products should not be left behind, and the good news is that some firms are already showing it doesn’t have to be this way. We want to see that progress reflected right across the market.”
The FCA has found evidence of firms capping or reducing charges for customers in legacy products.
Some firms were also comparing outcomes across different customer groups and products, and moving customers to better-value alternatives.
The FCA is now calling on all pension providers to consider the report and take on the good practice identified.
