Over a third (36 per cent) of UK adults have made changes to how their workplace pension is invested, marking an 80 per cent jump on November 2021 when 20 per cent of UK adults had made changes, research from Barnett Waddingham has revealed.

The survey found that some of these (12 per cent) have only made changes once, while 18 per cent have done so occasionally and 6 per cent regularly.

However, despite the increased engagement, the research found that corresponding trends have remained “remarkably consistent”.

In particular, younger members remained much more likely to make changes to their investments, with a "whopping" 63 per cent of 18-34 having made changes in 2022, compared to 12 per cent of over 55s.

Women were also still less likely to engage than men; 15 per cent of women in 2021 is now 26 per cent, and men’s likelihood has increased from 25 per cent to 43 per cent.

Barnett Waddingham partner and head of defined contribution (DC) investment, Sonia Kataora, suggested that the rise in engagement could be due to a range of reasons, pointing out that the cost-of-living crisis has prompted people to take stock of their finances, while “many” default DC schemes haven’t been performing as well as members expected, and industry campaigns have encouraged savers to pay more attention to their pension.

In addition to this, she noted that there is “undeniably a higher interest in, and passion for, responsible investing”.

Indeed, the research found that there is a strong appetite for their money to be invested responsibly, which it said is likely to be driving many of the investment choices, with 62 per cent believing their retirement savings shouldn’t be used to invest in things which hurt the planet, such as oil and gas.

In addition to this, over two thirds (67 per cent) of savers agreed that pension providers should be setting goals around climate change when deciding on how to invest their cash, such as achieving net zero emissions by 2050.

This was truer of younger savers, as the research found that almost four fifths (79 per cent) of 18-34s agree, versus 65 per cent of 35-54s and 57 per cent of over 55s.

In addition to this, the research found that 41 per cent of savers strongly agree that their provider shouldn’t be investing in the likes of weapons and tobacco, while a further 27 per cent ‘slightly agree’, and just over a fifth (21 per cent) disagreed.

Women were particularly impassioned, according to the research, as nearly half (49 per cent) strongly agreed, compared to just over a third (34 per cent) of men.

In addition to this, older savers were again found to be more likely to agree generally than their younger counterparts too, led by 35-54s (70 per cent), then over 55s (68 per cent), and finally 18-34s (66 per cent).

Top of the list, however, was the idea that pension money should be invested in things which help this country, including domestic infrastructure, with nearly three quarters (72 per cent) of savers agreeing with this.

Barnett Waddingham noted that this support is "especially pertinent" given the City of London’s proposals surrounding the ‘future growth fund’ for DC pension schemes, and ongoing government support for the topic.

Commenting on the findings, Kataora said: “The British public strongly believes that its money should be used in a way which helps fight climate change and helps the country, and cannot be used to cause harm.

“This will be music to the ears of policy makers who are keen to harness the power of DC funds."

However, Kataora clarified that trustees and pension scheme managers also have a responsibility to their members to generate the best returns at the appropriate risk level, to ensure the best outcomes for people at retirement.

"This balancing act will remain front-and-centre in the coming months," she continued.

“And we cannot lose sight of the fact that, despite the eighteen month increase in engagement, more than two thirds of workplace pension holders remain in their default fund. It’s critical that trustees of all DC schemes sit up and pay attention to the appetite of members for responsible investing. There’s no single answer to this question.

“It’s vital that trustees, investment providers, and consultants work together to stay at the front of the sustainable investing curve by developing solutions that both address the risks involved with climate change and other areas of sustainability, but also harness the huge number of opportunities to drive returns.

"Ultimately, this will improve member outcomes and maximise the amount that people have at retirement.”

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