Just 8 per cent of UK pension savers are willing to invest in high-risk assets, despite these funds typically delivering strong returns, particularly for younger savers.
A PensionBee survey of 1,000 UK adults found that almost half prefer moderate-risk options, which may fluctuate but offer steady long-term growth rather than higher risk/higher growth higher-growth-potential options. Another 26 per cent choose low-risk options, while 17 per cent prefer no risk at all, even if it means their pension barely grows.
Corporate Adviser’s CAPAdata research shows that higher-risk default funds for savers with 30 years to go until retirement have tended to achieve stronger annual returns than those with more balanced portfolios.
The PensionBee research also reveals that transparency is a big priority for savers. Around 84 per cent of respondents prioritise knowing exactly where their pension is invested, while only 11 per cent said this is not important, and just 5 per cent are comfortable leaving investment decisions entirely to their provider.
But despite their preference for lower-risk options, 59 per cent of savers said they’d be open to more complex assets, such as private equity or infrastructure, provided the risks and fees are clearly communicated. The remaining 41 per cent either wanted simpler, more straightforward options or were unsure.
PensionBee chief engagement officer Clare Reilly says: “These findings highlight that UK pension savers want stability and transparency, not speculation. The majority are looking for steady, reliable growth, with most favouring a balanced, moderate-risk approach.
“This demonstrates 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.”
