The research was commissioned to explore how parents are approaching their plans for the future, from financial to family life. Over half (53%) of parents admit they would rather tackle tasks like the school run, changing nappies, ‘babyproofing’ their home, or helping with homework than face managing their pension pot online2 – while only 11% are checking their retirement savings as a short-term priority.
The research from Nest, based on a sample of more than 2,000 UK parents, found 95% diligently take steps to ‘babyproof’ our homes for the short-term when children are small, including locking away hazardous items (71%), covering electric sockets (68%) and installing stairgates (65%).
When it comes to protecting our families in the longer term, parents plan to set aside £157 monthly on average for each child’s future – but almost one in 10 (8%) say they can’t afford any additional savings. Meanwhile, family holidays (39%), buying healthy food (31%), and family days out (31%) all emerged as more pressing short-term priorities than saving for retirement (27%).
Yet many do not realise that beyond protecting family at home, pension savings are not only contributing towards future financial security but are also investing in the future Britain their children will grow up in.
While 83% of those surveyed recognised the importance of understanding where their pension is invested, only half (55%) were aware of the types of impact that their pension funds could be having on UK society. Analysis of Nest’s own portfolio3 shows £10.6bn allocated to UK companies and projects, supporting one in 20 private sector jobs and 40+ clean energy and infrastructure assets spread across the UK.
Gavin Perera-Betts, Chief Customer Officer at Nest Pensions, said: “For busy parents, juggling family life is a pressure in itself, before we even begin to think about finances. So, it’s no surprise that we see most parents preferring to tackle the school run or a nappy change than think about their pensions. But what we’ve found in our research is that future proofing can take lots of different forms – from protecting your children from hazards around the house, through to making tangible provisions and investments by saving into a pension.
“At Nest, we’re proud to be supporting our members by using pension savings to invest in UK employers and clean infrastructure, helping them balance their futureproofing in the knowledge that their monthly contributions are driving a measurable impact for future generations.
“Our ‘three-step pension check’ is a good place to start if you’re feeling unsure about the future, as even small changes now can have a big impact on retirement security.”