The Association of British Insurers (ABI) has increased pressure on the government to scrap its proposed pension investment mandation power, after publishing research that shows savers are deeply uneasy about ministers having a role in directing how retirement money is invested.
The ABI’s YouGov polling found that 72% of UK adults have little or no confidence in the government to make the right decisions about how their pension is invested, while only 1% said they had a lot of confidence.
It also found that 49% of adults think giving the government the option to require pension schemes to invest in specific areas, such as UK companies or infrastructure, is a bad idea, compared with 24% who think it is a good idea.
“Mandation risks eroding public trust in the entire pensions system, both now and in the future… Investment must always be driven by savers’ best interests, and that principle should not be compromised.”
Yvonne Braun, Association of British Insurers
Among over-45s, 46% said requiring pension funds to invest in certain assets would negatively affect the amount of money they would have in retirement, while 71% of all adults said they had little or no confidence that future governments would use such a power responsibly.
The polling was based on a survey of 2,127 adults carried out online on 10-11 March 2026.
The findings come days after pensions minister Torsten Bell said the government would amend the Pension Schemes Bill to put “beyond doubt” that the reserve power is intended only to backstop the Mansion House Accord.
But the ABI said the latest polling showed that narrowing the clause may not be enough to reassure savers.
Yvonne Braun, director of long-term savings policy at the ABI, said: “These results reveal deep unease about plans to force pension funds to invest savers’ hard-earned money by government diktat. People need confidence that pension funds and the government are acting in their best interests, but many fear these plans could threaten their retirement living standards.
“Mandation risks eroding public trust in the entire pensions system, both now and in the future. We strongly support investment in the UK economy… but investment must always be driven by savers’ best interests, and that principle should not be compromised.”
XPS Group agreed that the power should be removed altogether rather than narrowed, warning that government direction over defined contribution (DC) asset allocation could create tension with fiduciary duty and raise questions over accountability if any mandated investments underperform.
Mark Searle, partner and head of DC investment at XPS Group, said: “We think a productive role for the government will be to continue to undertake reforms to ensure there is a strong supply of attractive assets for DC schemes to invest in.
“Evidence from abroad has demonstrated that a pipeline of assets with the characteristics required by pension schemes will be snapped up quickly, due to the benefits to member outcomes rather than because schemes have been compelled to purchase.
“We therefore don’t believe the reserve power will be needed, and should be removed rather than amended. Especially as the ABI research demonstrates how it could undermine trust in the system.”
