Nearly seven in 10 (69 per cent) pension savers would be encouraged to take positive action with their retirement savings if they had greater investment choice, according to research from Penfold.

However, the digital pension provider said many members also wanted guidance when making investment decisions, highlighting the need for providers to combine greater flexibility with simplicity and support.

Penfold argued that pension savers should no longer have to choose between limited control and an overwhelming range of investment options.

It noted that many workplace pensions continued to encourage members to select a single investment option and leave it unchanged for years, while platforms offering greater flexibility could present hundreds of funds without sufficient support to construct a diversified long-term portfolio.

The provider suggested that developments in technology now made it possible to offer members meaningful investment choice alongside guidance designed to support confident long-term decision-making.

Rather than requiring savers to become investment experts, Penfold argued that providers should help members build diversified portfolios that reflect both their financial objectives and the issues they care about.

Penfold chief executive officer and co-founder, Chris Eastwood, commented: “For too long, pension savers have been asked to choose between simplicity and flexibility.

“In many workplace pensions, you have very little say over how your money is invested. At the other end of the spectrum, some investment platforms offer so much choice that people are expected to work everything out for themselves.”

“Our research suggests people want something different,” he continued.

“They want greater control over how their pension is invested, but they also want confidence that they’re making sensible long-term decisions.

“We think the future of pension investing is about meaningful choice, supported by thoughtful guidance.”

Eastwood added that members should be able to build pension portfolios reflecting their priorities while retaining access to tools that support long-term investing.

The findings are informing the next stage of Penfold’s investment proposition, with the firm developing new capabilities intended to provide greater flexibility while keeping the pension experience straightforward and focused on long-term outcomes.

Further details of the changes are expected to be announced later this year.

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