Snapshot of UK saver attitudes to pension saving shows preference for simple choices and low risk pensions

Although many pension savers (82%) understand their pension is invested, only 26% know in what it is invested. Many savers (69%) believe they lack, or are unsure they have, the skills needed to choose where their pension scheme should invest. Unsurprisingly, therefore, many prefer that their schemes provide a few simple investment options (58%) or makes their investment choices for them (26%). Only 16% of respondents express a preference for full control over their investments.

The survey also revealed that 69% prioritise the protection of pension savings over the possibility of a higher return, underscoring a risk-averse attitude among participants. 44% say it is important for their pension provider to invest in a way which is protecting the environment, regardless of the return.

A substantial 67% of savers are advocating for tax incentives to encourage pension schemes to invest in UK companies, with this increasing to 74% of those aged over 55 Indeed, 53% of savers say they would like some of this investment to be in UK companies. However, half (50%) believe the UK Government should not dictate where pension companies invest savers' money, 24% neither agree nor disagree and only 18% agree or strongly agree.

Nigel Peaple, Director of Policy and Advocacy at the Pensions and Lifetime Savings Association, said; “Our survey provides an interesting snapshot on current saver attitudes to pension investment. Now most people understand their pensions are invested but they don’t feel they have the skills to make investment choices. Instead, they want their scheme to provide a few simple choices. Policy makers and the pensions industry should bear this in mind as they think about how to improve the UK’s approach to pensions."

METHODOLOGY

Consumer Research: Independent research carried out online by Yonder consulting with a nationally representative sample of 773 employees actively saving for a DC workplace pension.

Cali Sullivan, PR Manager

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