Business leaders are pushing Chancellor Rachel Reeves to require pension funds to allocate at least 25% of their assets to UK investments, potentially unlocking £95bn in domestic capital. But what do the people whose pensions are being invested want from their pension providers? And where do they think their money should be invested?
We at Thinks Insight & Strategy surveyed over 2,000 people across the UK to understand their priorities and preferences for pension fund investments. The findings reveal both broad consensus and stark political divides that pension providers and policymakers may need to navigate carefully.
Preferences align with policy
When those who hold pensions among the UK public were asked how they felt about different investment options for their pension funds, two clear territories emerged, both of which are high on the government’s policy agenda. 1. Renewable energy investments (such as wind and solar power) received 55% positivity, while 2. UK housebuilding and infrastructure topped the list at 55% positivity as well.
Positivity about different assets being held in their pension fund(s), UK pension holders
Notably, there's a consistent preference for UK-based investments over international alternatives. UK tech and AI startups received 42% positivity compared to just 28% for similar investments outside the UK. UK defence companies were viewed positively by 41% of respondents versus only 20% for non-UK based defence companies.
Political divides also run deep
Political alignment can also have a significant impact on attitudes towards different investment horizons. We asked those polled who they would vote for if there was a general election tomorrow. Looking at this by positivity for different investment types for their pension fund, positivity for renewable energy investments ranged dramatically, from just 28% among those who would vote Reform UK, to 77% among those who would vote Green Party. Those who would support Labour showed 69% positivity, Liberal Democrats 67%, and Conservatives 50%.
Positivity towards renewable energy investments, by voting intention
There are similar splits around defence investments. For example, UK defence investments see 56% of Conservative voters feeling positive compared to only 14% of Green Party supporters.
Common ground in breaking ground
Where there are some divisions along political lines, UK housebuilding and infrastructure proved remarkably unifying, with fairly consistent support across political alignment —from 49% among Reform voters to 60% among Liberal Democrats. The implication here is that domestic investments that tackle immediate, tangible national challenges may be viewed particularly positively as investment areas for their own assets and pensions among pension holders in the UK. This matters because as we also found there is still a lack of knowledge and engagement overall in their pensions – communicating about the most tangible and positively held ways pension funds could be invested to help support the UK may in turn help drive greater engagement and understanding.
Positivity towards UK housebuilding and infrastructure investments, by voting intention
Engaging pension holders in their investments
These tensions show that there are opportunities to better engage the public, but communication must be handled sensitively. The majority of pension holders (72%) said they find pensions complicated. However, the data demonstrates that when asked about specific investments like renewable energy or UK housebuilding rather than abstract concepts, these people have clearer views.
Overall, when asked about what they are seeking from pension fund providers, ‘Good returns’ (93%) and the provision of ‘Easy to understand information about the fund’ (90%) come out as high priorities, showing that making the link between specific investments and potential performance could significantly improve engagement.
Opening a dialogue to tackle the engagement gap
Encouraging dialogue about where pensions are invested, using concrete examples rather than high-level commitments, could help bridge the engagement gap. Emphasising UK-focused investments resonates across political divides, while sustainability messaging needs to demonstrate tangible benefits rather than just principles.
As the government considers mandating higher UK investment levels, these insights suggest such moves could align with public preferences — provided they're communicated effectively and pension holders are given meaningful choices about their investments.
