As the UK government puts the finishing touches to the white paper on the future of pension saving, new research from consumer watchdog Which? has shown that the financial services industry has a long way to go to gain the full trust of the public.
Which? spoke to 528 people aged 15+ who were either working or seeking work (and not retired) via an Ipsos survey during September 2006. The research found that only half of consumers (47%) trust the financial services industry as a whole and one in five of those questioned (21%) has had a bad experience with a financial company in the past.
Consumers who do not trust the industry are more likely to have had a bad experience, with 25% reporting past problems with a financial services company.
These are worrying statistics. The financial services industry’s past actions and mis-selling scandals have scarred British consumers, commented Doug Taylor, personal finance campaigner from Which?
Our research found that more than two in five consumers (43%) do not have any personal pension provision at all so we need to instill trust to encourage consumers to save now for their retirement.