Proportion of members changing how they invest doubles in past 18 months

The survey - conducted via Opinium among 2,000 adults in May - found 36% of UK consumers with a workplace pension had made changes to how that pension is invested.

Of those making changes, a third said they had only made changes once, half said they had done so occasionally and around a sixth said they had made changes regularly.

Barnett Waddingham said this engagement with pensions had increased by a staggering 80% in just 18 months - citing previous research it conducted with Opinium Research in November 2021 which found just 20% of people had made changes to their pension.

Despite this shift, Barnett Waddingham said the corresponding trends between its two surveys had remained remarkably consistent. In 2021, it said younger members were much more likely to make changes to their investments; 34% had done so, versus just 9% of those aged over 55. Now, it said a whopping 63% of 18 to 34 year olds have made changes, whereas the 55+ figure remains subdued at 12%.

In addition, it added that women were still less likely to engage than men - with just 15% of women in 2021 changing their investments as opposed to 26% now. This contrasts with the men whose likelihood to change investment had increased from 25% to 43%.

Source: Barnett Waddingham

Barnett Waddingham's research also delved into people's perceptions of how their workplace pensions should be invested - finding a strong appetite among members for their money to be invested responsibly, something it said is likely to be driving many of the investment choices.

Avoiding causing harm to people generates the strongest opinions from savers - with 41% strongly agreeing that their provider shouldn't be investing in the likes of weapons and tobacco.

Similarly, 67% of people agree (strongly or slightly) that pension providers should be setting goals around climate change when deciding on how to invest their cash, such as achieving net-zero emissions by 2050.

Source: Barnett Waddingham

Barnett Waddingham partner and head of defined contribution (DC) investment Sonia Kataora said: "It is remarkable that people's engagement with pensions has shot up so significantly since 2021. There are many possible reasons for this; the cost of living crisis has prompted people to take stock of their finances and make their money work harder, many default DC schemes haven't been performing as well as members expected, and successful campaigns from the likes of the Pensions and Lifetime Savings Association, Association of British Insurers and ‘Make My Money Matter' have encouraged savers to pay more attention to their pension.

"There is also undeniably a higher interest in, and passion for, responsible investing. The British public strongly believes that its money should be used in a way which helps fight climate change and helps the country, and cannot be used to cause harm. This will be music to the ears of policy makers who are keen to harness the power of DC funds. However, trustees and pension scheme managers also have a responsibility to their members to generate the best returns at the appropriate risk level, to ensure the best outcomes for people at retirement. This balancing act will remain front-and-centre in the coming months."

Despite this Kataora said that, despite the 18-month increase in engagement, more than two thirds of workplace pension holders remain in their default fund.

She added: "It's critical that trustees of all DC schemes sit up and pay attention to the appetite of members for responsible investing.

"There's no single answer to this question. It's vital that trustees, investment providers, and consultants work together to stay at the front of the sustainable investing curve by developing solutions that both address the risks involved with climate change and other areas of sustainability, but also harness the huge number of opportunities to drive returns. Ultimately, this will improve member outcomes and maximise the amount that people have at retirement."