New research from PensionBee reveals that UK savers are highly cautious when it comes to their retirement savings, with just 8% willing to invest in high-risk assets.
The findings indicate a strong preference for stability, as nearly half of respondents, at 49%, expressed a preference for a moderate-risk approach. This means they are comfortable with some fluctuations in their investments as long as their pension continues to grow over time.
Meanwhile, 26% of savers favoured a low-risk strategy, preferring to avoid market volatility where possible, and a further 17% took an even more cautious stance, wanting no risk at all, even if it meant their pension savings would see minimal growth.
The survey of 1,000 UK adults highlights the increasing demand for transparency in pension investments, with an overwhelming 84% of respondents stating that it was either very important or somewhat important to them to have full visibility over where their pension was invested.
Only 11% considered this to be of little importance, while a mere 5% felt that pension providers and fund managers should be left to make those decisions without the need for savers to be fully informed.
Despite their risk-averse stance, many pension savers are open to the idea of investing in more complex assets, such as private equity or infrastructure, if it supports UK economic growth. Almost six in ten respondents (59%) said they were comfortable with their pension being invested in these types of assets.
However, most within this group emphasised that they would only support such investments if the associated fees and risks were made completely clear to them. The remaining 41% either wanted their pensions to be invested in simple and transparent assets that they could easily understand or were unsure about their preferences.
What matters most to pension savers?
When asked about the most important factor in pension investments, respondents were split. More than half (52%) said that maximising long-term returns and ensuring low fees and transparency were the top priorities
In contrast, only 15% prioritised investing in UK PLC, the term commonly used to describe the country’s overall economy, suggesting that the Government’s recent calls to direct pension savings into UK businesses are not a major priority for many.
Meanwhile, 14% of respondents placed the highest importance on keeping their pension savings in low-risk investments, while 18% struggled to choose between these various priorities and instead wanted a balanced mix of all options.
Clare Reilly, Chief Engagement Officer at PensionBee, said: “These findings highlight that UK pension savers want stability and transparency, not speculation. The majority are looking for steady, reliable growth, with most favouring a balanced, moderate-risk approach.
“This demonstrates a clear preference for managing risk without sacrificing long-term returns. Savers want the confidence that their pension is growing steadily over time, and they demand transparency to ensure they fully understand where and how their money is being invested.”
