Ryan FowlerAccording to new research from WEALTH at work involving over 2,000 working adults with a defined contribution workplace pension, a striking 49% are unaware of the specifics of their pension investments.
This lack of awareness extends further, with 29% of respondents not even realising their pension is invested, and 38% oblivious to the availability of different investment fund options, a figure that rises to 44% among those aged 55 and above.
The research also highlights a disconnect between pension policies and personal values; only 21% have chosen pension investments based on their values and beliefs such as environmental, social, or religious concerns.
However, 40% expressed a willingness to increase their contributions if they knew their pension was investing in funds aligned with their values, a sentiment that grows to 48% among younger workers aged 18–34.
Jonathan Watts-Lay, director at WEALTH at work, expressed concern over these findings, emphasising the importance of engaging with pension savings and understanding how they are invested, especially as one approaches retirement.
He said: “It’s worrying that our research shows that many people don’t realize that a pension is an investment, or even that they have a choice over how their money is invested in their pension.”
