British pension savers may only support the investment of their retirement funds in UK-based growth businesses “if they demonstrate strong returns,” new research suggests.
A third (33%) of Brits believe pension “schemes should only be obliged to invest in UK assets” – as announced in the new Pension Schemes Bill – if these investments lead to proven performance gains, according to the research by PensionBee, an online pension provider.
Conversely, nearly a quarter (24%) of Brits “disagree with mandated investments in the UK and feel schemes should be free to invest wherever the best returns can be achieved.”
When asked about other potential changes to the UK pension system, “such as automatically combining small pensions into one pot, just over three quarters (76%) of savers supported this idea.”
It’s also been rumored that “the government may ask workers to increase their workplace pension contributions to help boost individual retirement outcomes.”
While respondents generally supported this idea, “almost half (45%) expressed concerns about affordability.”
This concern was notably higher among women “with 54% indicating that they might struggle to meet increased contribution demands, compared to 46% of men.”
Becky O’Connor, Director of Public Affairs at PensionBee, commented:
“The new Government has big plans for pensions and how they are invested and it’s important it delivers on claims that the changes will be in the financial interests of pension savers and also do not complicate pensions further. Proposals to invest more in the UK, to automatically consolidate smaller pots and to increase workplace contributions could be well supported if it is clear that the measures benefit individual savers by increasing their retirement pot or by making managing pensions easier for people. If the plans don’t achieve these aims, they could backfire.”
As covered recently Brits’ confidence in their retirement prospects continues to rise, according to PensionBee’s latest Pension Confidence Index.
The Pension Confidence Indicator score “surged to +30 immediately following the General Election, up from +22 in March 2024 and significantly higher than -10 in December 2023 and -9 in September 2023.”
This marks a noticeable shift “in sentiment, driven primarily by increased positivity among those under 55, the age at which people can first access their pensions, as well as sustained high confidence levels among those at or near retirement age.”
