Nearly seven in ten pension savers say greater investment choice would encourage them to take positive action with their pension, according to research by digital pension provider Penfold.
Penfold’s view is that pension investing should combine meaningful investment choice with guidance that helps people make confident long-term decisions. Rather than asking members to become investment experts, pension providers should make it easier for people to build diversified portfolios that reflect both their financial goals and the areas they care about.
In a survey of more than 800 Penfold members, 69 per cent said greater investment choice would encourage them to take positive action with their pension. The research also highlighted that while members want greater choice, many also value guidance when making investment decisions, reinforcing the need to combine flexibility with simplicity.
Chris Eastwood, chief executive of Penfold, says: “For too long, pension savers have been asked to choose between simplicity and flexibility. In many workplace pensions, you have very little say over how your money is invested. At the other end of the spectrum, some investment platforms offer so much choice that people are expected to work everything out for themselves.”
The findings come as the government pushes for less fund options within pension schemes, through legislation such as the scale test requiring workplace pension defined contribution schemes to have £25bn in a default fund by 2030.