UK pension savers want more information about how their retirement money is invested in infrastructure, with clearer communication significantly increasing support for the asset class, research due to be published in the coming weeks suggests.
More than eight in 10 (82%) savers said they wanted to know more about how pension money is used to invest in infrastructure, according to research commissioned by IFM Investors, NEST and Border to Coast Pension Partnership, and conducted by Ignition House.
The research combines a nationally representative survey of 2,000 UK defined benefit (DB) and defined contribution (DC) pension holders with a week-long qualitative study of 20 savers.
At the start of the survey, 55% of respondents felt positive about a small part of their pension being invested in infrastructure. After being shown case studies and examples, this increased to 72%, while 39% said the information had made them more positive.
“The message for the industry is clear: when pension savers can see how infrastructure investment supports both their retirement and the economy around them, they become more engaged, more confident and more supportive,” said Phelim Bolger, head of client services, UK and Ireland, at IFM Investors.
He said the industry had a “timely opportunity” to demonstrate the impact of pension capital as the Mansion House Accord targets a 5% allocation to UK private markets.
Elizabeth Fernando, chief investment officer at NEST Invest, said: “Clear, accessible information can help savers see how their pension supports local communities and connects to their financial future.”
Around 8% of NEST’s assets are already invested in UK private markets, she added, helping finance homes, transport, energy and digital networks.
The research also found that 65% of savers were more likely to support infrastructure investment in their area once they understood the range of projects it could fund.
Savers were generally open to pension capital funding local infrastructure, particularly where community benefits were clear, with stronger support for brownfield than greenfield development.
Ewan McCulloch, chief stakeholder officer at Border to Coast Pension Partnership, said better member understanding and engagement had been “a key feature within the LGPS and a lead that others could follow”.
