More than seven in 10 UK adults have little or no confidence in the government to make decisions about how their pensions are invested, according to research from the Association of British Insurers (ABI).

The survey, conducted by YouGov and commissioned by the ABI, found that 72 per cent of adults had little or no confidence in the government to make the right decisions about how their pension was invested, while just one per cent said they had a lot of confidence.

The findings come amid ongoing debate over government proposals that could give ministers reserve powers to encourage pension schemes to invest savers’ money in specific assets, such as UK companies or infrastructure.

Speaking at the Pensions UK Investment Conference 2026, Shadow Pensions Minister, Helen Whately, warned that mandating pension scheme investment would represent a "quiet power grab" by the government and a "tectonic shift" in the UK pensions system.

According to the survey, almost half (49 per cent) of UK adults believed that plans to give the government the option to mandate that pension funds invest a proportion of pensions in areas set out by the government were a bad idea.

A further 27 per cent said they were unsure, while only 24 per cent believed it was a good idea.

Older savers also expressed concerns about the potential impact on retirement outcomes.

The research showed that 46 per cent of adults aged over 45 believed that requiring pension funds to invest in certain assets would negatively affect the amount of money they have in retirement.

Another 28 per cent said they were unsure of the impact, while 21 per cent believed it would have no real effect, and just five per cent thought it would have a positive impact.

Looking ahead, the survey also revealed widespread scepticism about how such powers could be used in the future, with 71 per cent of UK adults saying they had little or no confidence that future governments would use powers allowing them to direct pension investment responsibly.

Within this group, almost one third (31 per cent) said they had no confidence at all.

Commenting on the findings, ABI director of long-term savings policy, Yvonne Braun, said the results showed “deep unease” about the proposals.

“People need confidence that pension funds and government are acting in their best interests, but many fear these plans could threaten their retirement living standards," she continued.

“Mandation risks eroding public trust in the entire pensions system, both now and in the future.

"We strongly support investment in the UK economy, which is why we helped create the Mansion House Accord.

"But savers’ best interests must always drive investment, and that principle should not be compromised.”

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