Almost one in two younger workers want their employer to allow them to pick their own pension provider, according to new research.
The survey — of almost 4,000 people by investment platform Tillit — suggests that this signals support for government ‘pot for life’ proposals, at least among younger workers, with just under half of under 45s (47 per cent) wanting this investment choice.
Overall the survey found that one in three (34 per cent) people want more control over their pension investments, with one in five saying this would encourage them to save more into these retirement saving pots.
This figures rises significantly among employees, with ‘Gen Z’ workers almost twice as to say they would save more if they had more control over how their pension was invested.
The research was commissioned by DIY investment platform Tillit which will soon launch a group Sipp proposition. This will sit alongside its employers AE pension scheme, giving employees the option to build their own investment portfolio.
The Tillit platform has a number of features that allow users to filter the funds they choose based on their values, whether that be backing female fund managers or avoiding fossil fuels. Its said its survey showed demand for such filters is rising, with the majority of (52 per cent ) of those aged under 45 wanting the freedom to invest their pension in line with their values.
Under 35s are more than twice as likely to invest in funds run by female managers, demonstrating an increasing desire to back a more diverse set of fund managers. Interestingly, the survey found men were marginally more likely than women to favour female managers.
Those in their late 20s and early 30s expressed the strongest desire for the option to avoid fossil fuels in their pension investments, with more than two in five (44 per cent) in that age group saying they would boycott such funds.
Tillit CEO and founder Felicia Hjertman says: “This survey shows that many people, particularly the generations at the mid- and early stage of their careers, want more control over what is, ultimately, their financial future.”
This new Tillit Pension is launching with select employers and pre-registered customers in April.
