Pension complaints rise sharply

Pension complaints are on the rise

The number of complaints about pension mis-selling and poor administration of pensions has soared, the Pensions Advisory Service (TPAS) has said.

TPAS, which mediates pension disputes, had 6,821 complaints about pensions in the past year, a 15% increase on the previous 12-month period.

Personal pension complaints rose 43%, but gripes about workplace pension schemes fell 12%.

TPAS said that some pension firms "lack concern" for customer service.

TPAS said the "worst offenders", as far as customer service was concerned, were pension providers that "are closed to new business."

Many UK pension providers have closed their funds to new business, following sharp falls in the stock market between 2000 and 2003.

Closed for new business means that the pension fund continues to invest but does not accept new savers.

Malcolm McLean, chief executive of TPAS, said that unless providers of pension funds which are closed to new business improved their customer service standards, the Financial Services Authority, the industry regulator should take action