Invest In A Better Future
Retirement planning is one of the most crucial investments you can make towards your retirement, to ensure you experience the quality of life you want in later years. Hundreds of thousands of savers have no idea that they are sitting on something amazing, company monitoring software something that could be used to fight climate change and other environmental problems – their pension pot.
The growing trend in sustainable investing continues to gain momentum, as people seek not just financial returns, but also to make a positive contribution to the world. Investors often look to gain this with funds that screen out companies that do not meet a certain threshold of sustainability, or by focusing on specific ESG (environmental, social & governance) themes.
Effective Ways To Invest Sustainably
The three pillars of Environmental, Social & Governance investing come together to define what most people would categorise as good business practice. Environmental issues include how companies interact with the environment; Social issues cover companies’ conduct towards their internal and external communities; and Governance issues cover how companies behave in their business activities.
A new survey indicates that the majority of UK savers are missing out on one of the most effective ways to invest sustainably – through their pension. Over 68% of pension holders were not aware about how sustainable their pension was and just one in ten (13%) thought it was easy to make sure their pension was environmentally friendly.
Options To Manage Pension Funds
Sustainable investing is crucial for people regardless of gender, age and income. At least 1/3 (36%) of people in every age group, aged 18-65 and over, said that having options to invest their pension only in sustainable companies matters to them. Despite the increase in popularity, savers still believe it is complex and that there isn’t much guidance.
Nearly two‐thirds (61%) of people stated it was important to have clearly branded fund options which allow them to invest only in environmentally and socially responsible companies. 63% of pension holders said they don’t actively make decisions about where their pension is invested, and one in ten were unaware that they have any options to manage their pension funds at all.
Making Sustainable Funds Clearer
However, over 50% said a fund that is based around low‐carbon and clean energy transition would make them more interested in their pension, while 54% said the same of a zero‐plastic themed fund. For young savers, easier responsible investing could have an even greater impact. Two thirds 67% of 18‐34 year olds claimed they would consider investing their money in a fund focused on clean energy.
With just under half (48%) of people totally unaware that there are ways to ensure their pension is environmentally friendly, making sustainable funds clearer and more accessible will benefit not only the environment, but also people’s financial future.
