UK savers are highly cautious when it comes to their retirement savings and want stability over high returns, PensionBee has said, after its research found that less than a tenth (8 per cent) of savers are willing to invest in high-risk assets.

The research showed a strong preference for stability, with nearly half of respondents (49 per cent) expressing a preference for a moderate-risk approach, meaning they are comfortable with some investment fluctuations so long as their pension continues to grow.

Over a quarter (26 per cent) of savers favoured a low-risk strategy, preferring to avoid market volatility where possible, while 17 per cent took an even more cautious stance, wanting no risk at all, even if it meant their pension savings would see minimal growth.

Additionally, the survey highlighted the increasing demand for transparency in pension investments as 84 per cent of respondents stated it was either very important or somewhat important to them to have full visibility over where their pension was invested.

In contrast, 11 per cent considered having full visibility over where their pension was invested to be of little importance.

Meanwhile, 5 per cent of respondents 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, the research suggested that many pension savers are open to investing in more complex assets, such as private equity or infrastructure, if it supports UK economic growth.

Almost six in 10 (59 per cent) respondents said they were comfortable with their pension being invested in these types of assets.

However, the majority of this group emphasised they would only support such investments if the associated fees and risks were made completely clear.

The remaining 41 per cent of respondents either wanted their pensions to be invested in simple and transparent assets that they could easily understand or were unsure about their preferences.

The research also indicated differing opinions about the most important factor in pension investments, with 52 per cent stating that maximising long-term returns and ensuring low fees and transparency were the top priorities.

In contrast, 15 per cent prioritised investing in UK PLC, with PensionBee suggesting that this showed that the government’s recent calls to invest pension savings into UK businesses are not a priority for many.

In addition to this, 14 per cent of respondents placed the highest importance on keeping their pension savings in low-risk investments, while 18 per cent struggled to choose between these various priorities and instead wanted a balanced mix of all options.

PensionBee chief engagement officer, Clare Reilly, said these findings highlight that UK savers want stability and transparency, not speculation.

She suggested that the majority of savers are looking for “steady, reliable growth”, with most favouring a “balanced, moderate risk” approach, demonstrating 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,” Reilly stated.

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