Pension savers favour UK investments

The majority, 53%, of UK savers would prefer their pension money invested in the UK, according to new consumer research from the Pensions and Lifetime Savings Association. When asked about their preferences, 37% said they would prefer UK investments if they generate comparable returns and a further 16% said they would prioritise UK investments even if they provided lower returns. Zoe Alexander, director of policy and advocacy at the PLSA, said: “It’s striking that UK investments are proving to be a preference for many savers. Pension schemes are already thinking hard about how to invest more in the UK in ways that will deliver strong returns.” Despite the focus on domestic investments, almost two-thirds, 63%, of savers do not know whether their pensions are invested in UK businesses or infrastructure projects, according to the study. Only 13% are certain that their pension includes UK investments, and 24% believe it does but are unsure. Ms Alexander said the research highlights a key principle for pension funds and policymakers: UK investment should be pursued when it directly benefits savers and their future retirement income. She said: “The Government has a key role to play in creating the right conditions, helping to deliver the right UK growth assets for schemes to invest in, at the right price. “And employers need to be encouraged to choose schemes for their employees that are delivering the best value overall, rather than just looking at the headline price, because the type of UK investments schemes are looking at can be more expensive, albeit with the potential to deliver strong returns. “By working together, the Government and the industry can ensure pensions drive both strong financial futures for savers and sustainable growth for the UK economy.” While climate change is also a concern for many savers (70% said they are worried about its impact), their investment preferences remain mixed. Only 19% of DC savers would definitely accept lower returns for greener investments. A further 50% said they might consider lower returns, but only if the impact was significant, and 31% prioritise financial returns. The research was carried out online by Yonder consulting with a nationally representative sample of 2,071 UK adults aged 18+ between 3-4 March 2025 (of which of which 603 have a DC workplace pension).

Pension savers favour UK investments

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