Pension holders believe it is important to know where their pension is invested but few actually know what their money is funding, research from Nest Pensions has shown.

The workplace pension scheme found that 83 per cent of UK pension savers thought it was important to understand where they were invested, but just 24 per cent actually knew.

Nest stated that this gap mattered as people missed the fact their pension was “one of the most powerful” financial tools they have when they did not know where their money goes.

The research also revealed that just 23 per cent of pension holders expected their money to be invested locally, suggesting many were unaware of the positive impact their money could be having in their communities.

Two thirds (66 per cent) said they would not expect or were unsure whether their pension would be invested locally.

Just 7 per cent of female respondents considered themselves to be investors, compared to 20 per cent of men.

To raise awareness, Nest has partnered with Coach Trip host, Brendan Sheerin, to take members on a tour across Yorkshire to highlight the places pension pots are invested in a range of campaign videos.

"I thought I’d seen every type of coach trip possible, but this journey with Nest members had a real twist,” Sheeran stated.

“Watching people discover that their own pensions are invested in places and businesses they recognise was a real lightbulb moment.

“I had a blast teaming up with Nest on this campaign, and it’s absolutely fantastic to know they’re helping build things right here in the UK that people can see and feel proud of, especially in my hometown of Yorkshire."

Nest Pensions chief customer officer, Gavin Perera-Betts, added: "Our 13 million members are investors, even if they don’t realise it. With our Everyday Investors campaign, we’re showing that investing isn’t confined to city skyscrapers, it’s happening in communities across the UK.

“We want our members to feel proud that their pension is invested, supporting projects and communities across the UK."

---