Pension savers continue to want part of their money invested on the stock market, despite recent market turmoil, research from Prudential has revealed.
According to the nationwide study, more than one in three people who are planning to retire in the next 10 years would prefer their pension to be partly invested in shares and the remainder in other types of investment.
Commenting, Andy Brown, Prudential's director of investment funds said: "Despite immense volatility in the stock market over the past year or so, there is still evidence of consumer confidence in equities to deliver a promising return for pension investments over the long term."
However, the economic downturn and its impact on equities has not gone unnoticed by more than a quarter of people who said they would prefer their pension to be invested solely in cash and low risk investment areas.
Mr Brown adds: "What is certain is that many people have been spooked by the recent economic maelstrom and, unsurprisingly, would prefer their pension to be in cash or lower risk investments as they near retirement."
Nevertheless, the FTSE 100 index of leading UK shares has rebounded since its lows of March, and diversifying a pension investment with some level of equities could allow savers to capitalise.
"Investors can really capitalise on the markets if they can access funds across a number of asset classes and sectors from a range of different investment managers allowing diversification across assets and manager styles," Mr Brown concluded.
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