Marvin OnumonuMore than half of savers (53%) prefer their pensions to be invested in the UK, research from the Pensions and Lifetime Savings Association (PLSA) has found.
Of these, 37% would choose UK investments provided returns are comparable, while 16% would still favour them even with lower returns.
However, 63% of savers remain unaware of whether their pensions are invested in UK firms or projects.
The study also highlighted a gap in financial knowledge, as only 23% of defined contribution savers knew where their pensions were invested.
Despite this, many savers prioritise returns over environmental or ethical factors.
Just 19% of DC savers would accept lower returns for greener investments.
Zoe Alexander, director of policy and advocacy at the Pensions and Lifetime Savings Association, said: “It’s striking that UK investments are proving to be a preference for many savers.
“Pension schemes are already thinking hard about how to invest more in the UK in ways that will deliver strong returns.
“The Government has a key role to play in creating the right conditions, helping to deliver the right UK growth assets for schemes to invest in, at the right price.”
Alexander added: “And employers need to be encouraged to choose schemes for their employees that are delivering the best value overall, rather than just looking at the headline price, because the type of UK investments schemes are looking at can be more expensive, albeit with the potential to deliver strong returns.
“By working together, the Government and the industry can ensure pensions drive both strong financial futures for savers and sustainable growth for the UK economy.”
