We asked 8 ordinary people what they think about their pensions investing more in Britain and their answers surprised us.
The pensions industry has concerns about government pressure to invest more in the UK. We’re worried about fiduciary duty. We debate political interference. We discuss costs and capacity and concentration risk. But while we’ve been having these technical conversations amongst ourselves, we forgot to do something simple. We forgot to ask members what they actually think.
So we at Quietroom thought we’d do just that with a bit of ad hoc qualitative research. We spent an hour in a London park with a camera and a microphone, talking to real people about their pensions. Just 8 short conversations. Nothing scientific. But what we found challenges the industry debate.
Members are actually open to UK investment
Nearly everyone we spoke to was positive about the idea of UK pension schemes investing more in the UK. The barrister trainee we spoke to thought it ‘makes sense’ for the government to use pension pots domestically. The university employee said it would ‘obviously be good if we were investing in the UK’. And the academic we spoke to was clear: ‘I think it’s a good idea. Definitely’.
This wasn’t what we expected. The industry spends so much time worrying about investment mandates and government interference. But the people whose money we’re investing? They seem quite relaxed about the idea.
Members are pragmatic, not dogmatic
Yes, members care about returns. Everyone we spoke to mentioned them. The PE teacher was blunt: ‘Gotta look after number one’. The lawyer wanted security and good returns above all else.
The bank worker hadn’t ever thought about where her pension was invested. But when asked about returns, she said: ‘If you get a good return, does it really matter where they’re invested?’
But here’s what surprised us: unlike the industry’s technical debates, members showed flexibility. They used phrases like ‘as long as it doesn’t make too much difference’ and ‘so long as I don’t have a huge drop in my returns’. They weren’t demanding maximum returns at all costs. They were open to balance.
Members see the bigger picture
Several people immediately grasped benefits that rarely feature in industry discussions. They talked about supporting British jobs and growing the UK economy. The barrister trainee thought that using pension assets to support the government’s growth agenda ‘seems sensible’.
The academic went further. He suggested UK investment could create a virtuous cycle. More investment drives prices up, which improves returns, which encourages more investment. ‘If that happens in the UK, probably the returns will get better,’ he said.
Industry folk might call this naive. But it reveals how real people feel about the bigger issue of how money and pensions fit into the world around us.
One hour in a park can do you wonders
We didn’t commission expensive research. We didn’t run focus groups. We just spent an hour talking to real people in a real place about a real issue. And we learned something crucial: there is a substantial gap between what the industry worries about and what members think. We might assume members share our concerns about optimal returns and global diversification. But they don’t. We might think members would worry like we do about the idea of UK investment mandates. But they wouldn’t.
Most telling was what people didn’t know. Most had no idea where their money was invested. The bank worker hadn’t a clue. Even the finance professional drew a blank. Yet when we explained the government’s plans, they weren’t opposed. They were curious, pragmatic, and open.
What this means for our industry
Perhaps the pensions industry is so deep in technical debates that we’ve lost sight of what members want. They want decent returns, yes. But they also want to feel their money is doing something worthwhile. They’re willing to accept trade-offs we might assume they’d reject.
This matters because we’re making decisions on behalf of millions of people. If we don’t understand what they think, how can we serve them properly?
So let’s ask them.
Not necessarily through formal consultations or complex surveys. Just talk to them. Even if it’s just for an hour in a park. You might be surprised by what you learn.