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Good money week -Investing in fossil fuels? Pension savers want to be in the know 

 

  • Over half (52%) of workers want to be notified by their pension provider if they are investing in fossil fuels
  • Nearly three in five (57%) workers care about the values of the companies their pension is invested in; but almost a third (31%) have concerns about how these beliefs could affect the performance of their pensions

Over half (52%) of workers want their pension provider to proactively tell them if they are investing in fossil fuels according to newly published research from financial communications agency Teamspirit.

The findings reveal that nearly three in five (57%) workers care about the values of the companies their pension is invested in and care about how they operate. Of those workers, one quarter (26%) believe that the companies they invest in must act in a responsible way and tackle key issues, such as climate change, modern slavery and the gender and diversity gap. However, concerns about how these beliefs could affect the performance of their pension remain a worry for many workers (31%).

Published ahead of Good Money Week (24th – 30th October) which aims to educate people about  sustainable and ethical options for banking, pensions, savings and investments, the research highlights a desire for more communication between pension providers and workers, especially younger workers, about how they can use their money to make change.

A look at the age breakdowns show a strong engagement between the younger generation and the ethics of the companies their pension is invested in, compared to some apathy amongst the older cohort. Those aged between 18-34 are both more likely to care about the values of the companies their pension is invested in (73%) and want to be notified if they are investing in fossil fuels (64%). In contrast, older generations in the 55+ age group are significantly less bothered about being notified if their pension is being invested in fossil fuels (36%).

Emma Evans, Director at Teamspirit, comments: “Encouraging people to engage with their pension is a bit like getting kids to eat their veg; most of us know the value of it but we don’t always fully commit. Recent events have however focused the mind when it comes to pension savings and there is a growing force for good among savers. Most people in workplace schemes, and significantly young people, want to know that their money is rightly tackling key issues like climate change, modern slavery and the gender and diversity gaps. So let’s talk to workers about that and how the money invested into their pension each month can actually make a difference. Let’s lift the lid and enable greater knowledge by showing people how to check what their pension gets up to starting with education about the impact on investment performance.

“Online seminars and lively email content are one part of the solution once we have their ear but we need to grab their attention first. We need to think about video, animating the experience through games, harnessing the power of influencers and creatively educating, informing and sharing experiences for the better. Only by transforming the way we think, act and communicate will we be able to make a difference. “

 

 

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