Press release
Nearly half of Brits lack confidence in pension funds as Government urged to clarify trustee duties
18/03/2026
Almost half of respondents (44%) described themselves as lacking confidence that pension savings are adequately protected from long-term risks, in a new YouGov survey [1]. The findings underline growing public concern about the security of retirement income. They also add to rising concerns within the industry that not enough is being done to protect savers’ retirement from the physical and economic risks of climate change [2], and that some pension investments are actually increasing those risks [3].
A new Pensions Schemes Bill, currently before Parliament, offers the Government a critical opportunity to strengthen savers’ confidence in the pensions system, at a time of economic and environmental uncertainty.
The Bill has included a key amendment at each parliamentary stage, seeking to clarify investment duties of trustees to ensure broader risks are considered when protecting the value of pots, including the systemic risks caused by climate change. The amendment is backed by influential stakeholders across industry, unions, and advisors, and has cross-party support in Parliament.
Pension trustees have fiduciary duties to act in members’ best financial interests. However, although the expert consensus is clear [4], uncertainty remains in some quarters about the extent to which trustees can – and should – take overarching, system-wide risks into account when making investment decisions designed to protect value. Supporters of the amendment claim clarification will give trustees the confidence to act decisively and help secure the retirement value people are counting on.
Ministers in both the House of Commons and the House of Lords have committed to addressing these concerns in their parliamentary speeches. They pledged to produce guidance to support trustees’ understanding of their duties to consider systemic risks and the real-world factors that may affect savers’ standards of living in retirement [5] and recognised the importance of these duties applying to all pension scheme trustees – including those investing Local Government Pension Schemes [6].
ClientEarth lawyers welcome these commitments, and urges the Government to deliver on them swiftly, unequivocal guidance for pension trustees that they should take into account system level risks such as climate change, and the impacts of investments that affect savers’ standard of living in retirement. ClientEarth therefore continues to support the key amendment that refers explicitly to such risks and requires guidance on an expedited timescale of six months, which has been tabled with cross-bench support in the Lords [7].
Unlike isolated investment losses, risks posed by climate change and nature loss are systemic, affecting broad market conditions, asset values and growth, making them difficult to diversify away from. They could dramatically undermine productivity, damage infrastructure, disrupt supply chains and reduce returns across the financial system [8].
For pension schemes, with long time horizons and diversified portfolios, growing concern has led some funds to be vocal about these risks and even withdraw trillions from asset managers they fear are not managing risks adequately [9].
Catriona Glascott, Lawyer at ClientEarth said:
“People rely on their pensions to pay returns for decades to come and support them in later life. In an ever-changing world with increasing risks posed by climate, nature loss and security, it’s no wonder people want greater confidence that trustees have got their eyes on the road ahead.
“The effects of climate change are already impacting the value and insurability of physical assets and posing risk at every level from individual investments to the whole economy – threatening pension pot value and retirees’ standards of living.
“Greater clarity on their legal duties will give trustees the confidence to act decisively in protecting pension value, which will strengthen public trust, and help ensure that today’s workers can retire with the financial security they have saved for.”
The Pension Schemes Bill is currently at the Report stage in the House of Lords. The amendment is due to be debated on Monday 23rd of March in the Lords and the Bill is expected to return to the Commons for debate next month before receiving Royal Assent.
ENDS
Notes to editors
[1] All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,090 adults. Fieldwork was undertaken between 4th - 5th March 2026. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). https://ygo-assets-websites-editorial-emea.yougov.net/documents/ClientEarth_Pensions_260305.pdf
This follows last year’s Trafalgar House Trust & Confidence Index found that public trust in the pensions industry fell for the first time, with the average score slipping to 5.23 out of 10 in 2025 after several years of gradual increases.
[2] Industry concern was shown by a poll at this year’s industry-focused Pensions UK Investment Conference which showed that 67% of delegates believe pension schemes are not doing enough to mitigate climate change.
[3] New research from Finance Innovation Lab suggests that more than £10.5 billion of UK pension savings remain invested in companies involved in the extraction or burning of thermal coal overseas. https://actuaries.org.uk/planetary-solvency
[4] As set out in the independent Financial Markets Law Committee’s authoritative report on fiduciary duties, including at paras 6.3 and 6.8. Further, pension fiduciaries globally face growing litigation risk for failing to adequately manage systemic risks like climate change: Canada’s largest pension investment manager sued over climate risk mismanagement, and America - Real estate group Cushman & Wakefield sued over climate risk
[5] House of Commons Hansard Volume 776, Torsten Bell MP speaking at Column 1043, in the Pension Schemes Bill debate on 3 December 2025
[6] House of Lords Hansard Volume 853, Baroness Sherlock speaking at Column 293GC, in the Pension Schemes Bill debate on 3 February 2026
[7] Amendment listed on page 67, HL Bill 169—Running List 11 March
[8] The Institute and Faculty of Actuaries has warned in its Planetary Solvency paper that under current global climate and nature policies, the global economy could lose up to 50% of GDP between 2070 and 2090 if urgent action is not taken. The Government’s own National Security Assessment on global biodiversity loss, ecosystem collapse and national security has detailed the risks to economic stability, and additional extracts seen by ITV news reportedly project that nature loss could lead to annual "GDP being 12% lower than it would have been otherwise by 2030.”
[9] BlackRock loses second Dutch pension mandate over sustainable investing concerns
About ClientEarth
ClientEarth is a non-profit organisation that uses the law to create systemic change that protects the Earth for – and with – its inhabitants. We are tackling climate change, protecting nature and stopping pollution, with partners and citizens around the globe. We hold industry and governments to account and defend everyone’s right to a healthy world. ClientEarth teams in Europe, Asia and the USA work to shape, implement and enforce the law, to build a future for our planet in which people and nature can thrive together.