Brits reject pension gamble, choose stability over high-risk bets

By Gloria Methri

In an era of economic uncertainty and shifting retirement expectations, British savers are making one thing clear: when it comes to their pensions, stability prevails over speculation. Rather than chasing high returns through risky investments, most UK pension holders are opting for steady growth, transparent management, and long-term financial security.

This trend is underscored by new research from PensionBee, which reveals just 8% of savers are willing to invest in high-risk assets. The majority are risk-conscious, with 49% preferring a moderate-risk strategy, which is comfortable with some market fluctuations as long as their pension pot continues to grow over time. Meanwhile, 26% favour low-risk investments, and 17% prefer no risk at all, even at the expense of minimal growth.

Commenting on the findings, Clare Reilly, Chief Engagement Officer at PensionBee, said, “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.”

Indeed, the survey highlights growing expectations for greater visibility and control. A striking 84% of respondents said it was important to them to know exactly where their money is being invested. Only 5% were content, leaving those decisions solely to fund managers.

Interestingly, this prudence doesn’t mean savers are opposed to complexity, provided it comes with clarity. Nearly six in ten (59%) are open to their pensions being allocated to asset classes such as infrastructure or private equity, particularly if these investments support UK economic growth. However, most in this group emphasised the importance of transparent risk disclosures and fee structures.

Savers Prioritise Stability

When asked about the most crucial factor in pension investing, 52% highlighted a mix of strong long-term returns, low fees, and transparency as their top priorities. In comparison, just 15% prioritised investing in “UK PLC”, the shorthand for the British economy, suggesting that recent government appeals to funnel pension capital into domestic enterprises may not be aligned with saver sentiment.

14% of respondents prioritised low-risk options, while 18% sought a balanced mix of all priorities, reflecting the nuanced expectations of today’s pension savers.

These findings are a wake-up call for pension providers and policymakers. Today’s savers demand clarity, caution, and control — not complex products hidden behind financial jargon. As the industry continues to modernise and diversify, striking the right balance between innovation and transparency will be key.