Young savers lead the way on pensions and UK investments know-how

Despite increased political and media attention on pension investments over the past year, overall understanding remains low and progress uneven across age groups.

Younger savers driving engagement

This year’s findings show that younger adults say they have a higher awareness of where their pension is invested compared to older savers. A total of 31% of those aged 18 to 34 say they know what their pension is invested in, compared with 21% of those aged 35 to 54. Younger savers are also more likely to say they have made changes to their investment options, with 21% saying they have done so compared with 12% of middle‑aged savers. They are also more interested in domestic investments (22%) preferring UK investments even if returns are lower, compared with only 13% among older groups.

Public support for UK investment hinges on returns

Across the wider population, there is strong appetite for UK investment, but this support is highly conditional. The research shows 32% of savers would prefer their pension money to be invested in the UK, but only if returns are comparable. A further 16% say they would prioritise UK investment even if this meant receiving lower returns. While interest in domestic investment is clear, a majority of savers continue to prioritise performance above all else.

Awareness rises but understanding stalls

Despite sustained Government focus on pension investment reform, the findings show that savers’ understanding of their pensions remains limited. Awareness that pensions are invested has risen to 77%, up from 74% last year, but only a quarter of savers (24%) say they know where their money is invested, indicating minimal improvement from the 20% reported in 2025. Support for the Government encouraging schemes to invest in UK companies has also weakened, falling from 60% last year to 50% today. Although many savers remain open to the Government playing a supporting role, the research shows that 44% believe the Government should not tell pension companies where to invest savers’ money, with around a quarter (26%) thinking they should, highlighting a clear difference between encouragement and control.

Most savers still do not know whether they are invested in the UK

Confusion persists about whether pension savings are invested in UK companies or UK‑based projects. The research shows that 61% of savers do not know whether their pension includes UK investments, while only 14% are confident that it does. This lack of clarity remains a significant barrier to informed decision‑making and highlights the continued need for better communication from schemes and policymakers. The research demonstrates that many Brits remain confused about their pension holdings despite pensions representing one of the largest financial assets they hold.

Zoe Alexander, Director of Policy and Advocacy at Pensions UK, said: “Younger savers appear more confident when it comes to understanding and engaging with where their pension money is invested. But even among younger savers, there are big knowledge gaps. That’s why it’s so important that while trying to improve financial understanding, we must make sure the system works well for savers who take no or little action.

“This year’s findings also reinforce a very clear message. The public is open to the idea of greater UK investment, but only when it supports strong returns. Savers want the Government to encourage pension schemes to invest in the UK where it makes sense for them, but they do not want the Government telling schemes where to put their money. People want good outcomes, not political direction, and any policy push must keep savers’ interests at its heart.

“By working together, the Government and the industry can create the right environment for pension schemes to deliver strong financial futures for their members, while also supporting long term and sustainable growth for the UK economy. Savers need clarity, confidence and trust, and that means continuing to improve understanding alongside any wider investment reforms.”

ENDS

Consumer Research: Independent research carried out online by Yonder Consulting with a nationally representative sample of 1,567 UK adults aged 18 and over who are not retired, between 6 and 8 February 2026, of which 637 are actively saving for a DC workplace pension.

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, Senior PR Manager
020 7601 1761 | [email protected]