A third (33 per cent) of British pension savers believe that schemes should only be obliged to invest in UK assets if these investments lead to proven performance gains, research from PensionBee has found.

However, nearly a quarter (24 per cent) disagreed with mandated investments in the UK and felt schemes should be free to invest wherever the best returns could be achieved.

The research also found that, when asked about other potential changes to the UK pension system, 76 per cent of savers supported small pensions being automatically combined into one pot.

In addition, PensionBee asked savers if they thought the government asking workers to increase their workplace pension contributions to help boost individual retirement outcomes was a good idea, amidst rumours that the government might do so.

Almost half (45 per cent) said they supported this idea in theory but had concerns about affordability, 30 per cent said they thought it was a good idea, while 17 per cent said they did not.

Affordability was a greater concern among women, with 54 per cent indicating that they could struggle to meet increased contribution demands, compared to 46 per cent of men. 

Commenting on the research, PensionBee director of public affairs, Becky O’Connor, explained: “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.”

O’Connor said that proposals to invest more in the UK, to consolidate smaller pots automatically, and to increase workplace contributions could be well supported if it is “clear” that the measures will benefit individual savers by increasing their retirement pot or by making managing pensions easier for people.

However, she warned: “If the plans don’t achieve these aims, they could backfire.”

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