Nearly three-quarters of savers (70 per cent) are worried about investing in UK illiquid assets, including infrastructure and start-ups, due to concerns over potentially higher risks and costs, according to research from PensionBee.

The survey found that there was a customer preference for only some investment in UK illiquid assets amongst 39 per cent of savers, whilst 36 per cent favoured no investment in UK illiquid assets at all.

Over three-quarters (76 per cent) of consumers also said that they would mind encountering delays, as their illiquid assets were converted to cash, preventing them from transferring or accessing their pension savings quickly, with 32 per cent of these saying they would be “very frustrated”.

The findings follow the government’s recent challenge for UK institutional investors, including pension schemes, to invest in more long-term illiquid investments in order to trigger a “investment big bang”.

PensionBee CEO, Romi Savova, commented: “We do not believe that the UK government should play a role in deciding pension asset allocation. Our latest research indicates that a significant section of the general public also share our concerns.

"The routine investment selection process should be followed in all instances, including when deciding to add illiquid assets to an investment portfolio.

"Illiquids, like all asset classes, will evolve over time, and we expect our asset managers to monitor cost competition and outcomes, and maintain a risk-appropriate selection process.”

Share Story: