Pension savers' support for infrastructure investment rose from 55 per cent to 72 per cent after they were provided with clearer information, according to research from IFM Investors, Nest and Border to Coast.

The joint research, covering defined contribution (DC) and defined benefit (DB) pension holders, found that support for a small allocation of pension savings to infrastructure rose after participants were shown case studies and examples, with 39 per cent saying the information made them feel more positive.

The study also found strong demand for greater transparency, with 82 per cent of respondents saying they would like to know more about how their savings were invested in infrastructure.

Greater understanding also appeared to increase support for projects closer to home, with 65 per cent saying they were more likely to support infrastructure investment in their local area once they understood it could include a wide range of projects that can deliver local benefits.

The research report, due to be published next month, highlighted a strong appetite among savers to understand and know more about how their pension savings are invested, suggesting that pension providers may be missing an opportunity to engage members.

“The message for the industry is clear: when pension savers can see how infrastructure investment supports both their retirement and the economy around them, they become more engaged, more confident and more supportive,” said IFM Investors, head of client services, UK and Ireland, Phelim Bolger.

Bolger said he saw “a real opportunity” to help schemes clearly explain how long-term capital supported the essential infrastructure people rely on every day, while helping to deliver better outcomes for members.

He added: “Pension capital is already backing critical infrastructure across the UK and, with the Mansion House Accord targeting a 5 per cent allocation to UK private markets, the industry has a timely opportunity to work together to demonstrate that impact more clearly. Doing so can help build greater understanding, confidence and trust in the pensions system.”

Commenting on the findings, Nest chief investment officer, Elizabeth Fernando, said: “Clear, accessible information can help savers see how their pension supports local communities and connects to their financial future.

"As schemes explore long-term opportunities, we must help members understand the benefits of these investments and the role they can play in delivering value for members over the long term.”

Border to Coast Pension Partnership chief stakeholder officer, Ewan McCulloch, added: “The pension offered by the Local Government Pension Scheme (LGPS) plays a major role in attracting and retaining local workers and so engagement is generally high.

"As such, LGPS schemes have traditionally been proactive in communicating with members, which in turn creates a virtuous circle. Plus, the councillors on pension committees are also members, which keeps the voice of the member central.

“There is always more to do – and it’s also true that DC schemes face more challenges – but the positives that come from better member understanding and engagement has been a key feature within the LGPS and a lead that others could follow,” he concluded.

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