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 research by PensionBee, a leading 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 rumoured 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.”
|
