Do you know where your pension is invested?

New research by the Pensions and Lifetime Savings Association (PLSA) shows only a quarter of savers know where their pension is invested.

This means many are in the dark about whether their retirement funds are being invested into UK businesses or infrastructure projects.

If you’ve never checked where your pension is invested, we explain how to go about it – and the reasons why you might want to find out. 

Most savers don't know where their money is invested

A new survey by the PLSA has highlighted gaps in pension awareness. 

74% of respondents said they know their pension is being invested, but only 23% of defined contribution (DC) savers and 25% of defined benefit (DB) savers know where the money is going.

When it comes to making investment decisions, confidence is split: 37% of DC savers believe they have the knowledge to choose their pension investments, while the same percentage say they don’t.

This uncertainty extends to UK investments: 63% said they don’t know whether their pension supports UK businesses or infrastructure projects. 13% are certain it does, while a further 24% believe their pension includes domestic investments but aren’t sure.

53% of savers said they would prefer UK investments, but returns were the key concern. 37% would prefer UK businesses if they generated comparable returns, but just 16% would prioritise them even if they provided lower returns. 

• Find out more: how much you need to retire

How your pension is invested

When you contribute to a pension, your money is pooled with other savers and invested in a mix of assets. These typically include:

• Stocks and shares Investments in companies.
• Bonds Loans to governments or companies.
• Property and infrastructure Investments in physical assets such as commercial buildings or renewable energy projects.
• Cash and alternatives Some funds include a cash reserve or investments in commodities such as gold or gas. 

If you have a workplace pension, it's likely you're in a default fund, which is a pre-selected mix of investments chosen by your provider. These funds are designed to balance risk and returns over time, often shifting to lower-risk investments as you approach retirement.

For those with a self-invested personal pension (Sipp), you have more control over where your money goes. However, managing your own investments requires time and confidence.

• Find out more: best Sipp providers 2025

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Why it matters

Not knowing where your pension is invested could mean missing opportunities to align your money with your values.

For example, some providers offer ethical or sustainable funds that exclude certain industries such as tobacco or mining.

It could also mean your pension isn’t performing as well as you’d expect. 

According to the pension provider PensionBee, 90% of savers remain in default funds, which may not maximise returns. 

It says a saver achieving 3% annual investment growth could accumulate £194,000 between the age of 21 and 68. But those in a fund growing at 7% could amass £697,000 – a difference of £503,061.

Before making changes, it’s important to check the potential impact on returns, fees and risk.

• Find out more: 5 investment questions to ask about your pension

Government consults on UK investment 

The government is reviewing how pension funds invest in the UK, particularly in private markets, as part of its Pensions Investment Review.

Pension funds already invest around £1 trillion in the UK, accounting for a third of their total assets. Much of this goes into government bonds, which help fund public services, as well as corporate bonds, equities and property.

The PLSA has stressed that pension funds must have the freedom to make investment decisions that serve savers' best interests. It said the government and industry should work together to ensure pensions provide strong financial returns while supporting sustainable growth in the UK economy.

• Find out more: how green is your pension?

How to find out where your pension is invested

If you’re unsure where your pension contributions end up, here’s how to check:

• Look at your annual statement Your provider should list the funds your pension is invested in.
• Check your online pension portal Many providers now offer online dashboards showing your investment breakdown.
• Contact your provider If you can’t find the details yourself, ask for a full breakdown of your investments.
• Review your options If you’re unhappy with how your pension is invested, you may be able to switch funds within your scheme or transfer to another provider.

Find out more: how to transfer your pension