Pension savers favour UK investment

More than half of UK pension savers favour UK investment and want managers to invest their money at home. The Pensions and Lifetime Savings Association recently surveyed savers and found that 53% choose UK investments over those abroad.

The survey also showed that 37% of people would pick UK investments if they offered the same returns. Even 16% would choose UK assets even if the returns were a bit lower.

This shows many savers care about helping the local economy as much as making money.

Many savers don’t know where their money is invested

Even though many pension savers favour UK investment, most do not know where their pension money actually goes. A surprising 63% don’t know whether investment managers put their pensions into British companies.

Another 24% think investment managers might invest their money in the UK but remain unsure. Only 13% say they are sure their pensions directly support the UK economy.

This trend worries many experts and savers. For many, a pension is the biggest amount of money they will have. Yet few understand where investment managers invest their money.

While 74% know their pension provider manages their money, only 23% of those with defined contribution pensions knew which companies or funds manage their money.

For those with defined benefit pensions, this was a little higher at 25%.

How confidence and climate concerns influence pension savers favouring UK investment

When asked about managing their pension investments and their preference to favour UK investments, savers were divided. Just 37% of defined contribution savers felt confident choosing where their money goes. Another 37% said they were not confident at all. This shows a need for better financial education.

Climate change also affects choices. While 70% of savers worry about the environment, their actions vary. About 19% said they would accept lower returns to invest in greener options.

Another 50% said they might consider it if the environmental benefits were clear. But 31% still put making money ahead of environmental concerns.

How pension savers favour UK investment to build stronger pensions

UK investment remains a key focus as pension savers continue to favour UK investments to build stronger, more resilient pension funds. This encourages pension providers to find more ways to invest in the UK while aiming for steady returns.

But pension providers can’t do this alone. The Government should help by offering good UK investment options at fair prices. Employers also have a role by offering pension schemes that balance value and growth. Some UK-focused funds may start with higher fees but aim to deliver strong long-term returns.

Get expert advice

Pension savers favour UK investment when given the chance, they want more transparency, better information, and more opportunities to support the UK economy through their pensions. If the Government, providers, and employers work together, they can create pension options that help savers reach their goals and support the economy.

Let Regulated Advice match you with a financial advisor for expert advice.