The pensions industry must do more to understand consumers' concerns and help improve confidence in the market, a new report has found.
While savers care "deeply" about their retirement income, consumers feel "disconnected" from the pensions market and don't trust providers to grow their pot in a responsible manner, according to the National Employment Savings Trust (Nest).
People want to be reassured that the industry is acting responsibly with their savings and an understanding of their concerns - something it is failing to do, the report found.
The pensions market is currently undergoing some of the biggest reforms it has ever faced. Since October 2012, auto-enrolment has seen a slice of employees' pay automatically put into a savings pot, with around only 10% of workers opting out.
And in this year's Budget, Chancellor George Osborne announced plans to increase flexibility in the industry, with retirees no longer obligated to purchase an annuity that would guarantee them an income for the rest of their lives.
However, most consumers don't understand the need for taking risk when it comes to their pension saving and associate poor performance with incompetence and wrong-doing – a perception that the industry must do more to change said the report.
Certainty for savers
Chief executive of NEST, Tim Jones, said: "As an industry we need to find innovative ways of providing greater certainty for savers, but without high charges and without foregoing inflation-beating growth. We also need to find ways to help consumers feel they are at the heart of a debate that is about helping them achieve their retirement goals."
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