Britain’s pension savers have little appetite for being steered towards domestic investments unless doing so promises better returns, according to new research that highlights a potential obstacle to the Government’s drive to channel more retirement money into UK assets.
A survey by PensionBee found that 61 per cent of savers in its default pension funds simply wanted their money invested where the best returns could be achieved, regardless of geography. Just 21 per cent said they would support greater investment in UK companies, while 16 per cent had no strong view.
The findings come as the Government steps up efforts to encourage workplace pension schemes to invest more in Britain following the Mansion House Accord.
The Pension Schemes Act 2026 has given ministers a restricted reserve power to require workplace defined contribution pension funds to increase their investment in the UK, adding pressure on schemes to raise their domestic allocations.
But PensionBee’s surveys of customers in its Global Leaders Plan, its default fund for savers under 50, and its 4Plus Plan, the default for those aged over 50, suggest that many pension savers remain sceptical of a greater home bias if it comes at the expense of investment performance.
Respondents were told that the UK accounts for about 3 per cent of global stock markets, a weighting reflected in PensionBee’s all-equities Global Leaders Plan.
Asked which statement came closest to their view, 61 per cent said they wanted the best returns “wherever in the world that is”. Just over a fifth said they supported greater investment in the UK.
Support for increasing domestic allocations was conditional among many of those who favoured the idea.
More than half (52 per cent) of those open to greater UK investment said they would support it only if it did not reduce their returns. A further 31 per cent said they would need a better tax incentive before backing the policy.
Only 16 per cent of those broadly supportive of greater investment in the UK said they would accept lower returns as a consequence.
The findings underline the challenge facing policymakers seeking to redirect pension capital towards British companies while ensuring savers are not disadvantaged.
PensionBee also surveyed savers on stewardship priorities. Ending child and forced labour was ranked the most important issue, cited by 47 per cent of respondents, followed by paying real living wages at 38 per cent.
Fair tax practices were identified by 27 per cent, while 26 per cent prioritised reducing greenhouse gas emissions.
Despite their reluctance to increase exposure to UK assets, savers expressed strong satisfaction with PensionBee’s global investment approach. Across both default funds, 84 per cent said they were satisfied or very satisfied with the plans in which they were invested, compared with only 3 per cent who were dissatisfied.
Clare Reilly, Chief Investment Solutions Officer at PensionBee, said:
“Our job is to seek the best returns for our default customers, wherever in the world they’re found, which is why 84% of survey respondents told us they’re happy with our global approach to growing their retirement savings. Our survey found little appetite for a greater UK tilt. And even among the minority who wanted one, most said they wouldn’t accept it if it meant lower returns.
“If savers are telling us that they don’t want their retirement pots steered towards the UK unless it leaves them better off, then these insights may give the Government pause for thought. Without a clear returns rationale or other tax incentives to sweeten the deal for savers in the workplace, then they are asking ordinary savers to shoulder the long term consequences of decisions made for them, not by them.”
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