Pension lost 60% value within 4 years of retirement date

[8till8]

I have a relative who is 59 and has a pension product with one of big three banks. His statements show the fund has lost 60% of its value over the last 2-3 years, his retirement date on the policy is 60 but now he has no choice but to extend this to 65 and hope the fund recovers to something reasonable.
I've only recently discovered this and am shocked that the pension provider did not shelter his fund into lower risk sectors as he approached pension age, isn't that what the fund charges and fee's are for?
My relative is not clued up on finances etc and left it to the pension provider to manage the whole thing.
What do people think he should do? Is a complaint to Financial Ombudsman appropriate?

 

[Mpsox]

Financial Ombudsman will not look at anything until you have exhausted the relevant bank's customer complaints procedures.

 

[z109]

I agree with what you think should happen (move into low risk investments) and with what Mpsox has said. Start complaining in writing to the pension provider.

 

[LDFerguson]

Lifestyle funds, which automatically switch into lower-risk assets as you get older are the default option on PRSAs but you can choose to opt out and select your own funds if you wish.

On other forms of pension product, lifestyle funds are a choice so if you want your pension provider to manage your funds in this way, you have to proactively choose the lifestyle fund option. That assumes that your provider has a lifestyle fund option, or in this case, that they did have when your relative started his plan.

In my opinion, any complaint will revolve around what was documented at the time your relative started the plan. Did he specifically ask the pension provider to actively manage his pension fund and switch him into lower-risk funds as he approached retirement? Or did he assume that they would? If the latter, did they give him any assurances or reason to believe that they would do this?