Carina Chambers, Technical Pensions Expert at Moneyfarm, comments on the generational divide when it comes to aligning investments with environmental and climate concerns.
A significant proportion of Gen Z and Millennials say they would rather accept lower returns on their pension savings and work past the standard retirement age to make up the shortfall, than fund what they perceive to be socially or environmentally damaging industries.
Those approaching retirement age are the least concerned about where their pension money is invested, with research commissioned by Moneyfarm showing overall, investment returns are more important to financially worried Brits at this time, with more admitting this was the priority when selecting a pension plan than environmental and climate concerns.
However, despite Gen Z's concern about where their pension pot is being invested, a third of the nation still does not currently have an ethically invested pension plan, with more than half realising they wouldn’t have a clue how to find out.
Carina Chambers, Technical Pensions Expert at Moneyfarm, comments:
Whilst contributing to a pension is a crucial step towards financial security, this research shows that the investment choices that drive the growth of those funds often go unexamined.
We also see the generational divide in attitudes towards ethical investing is striking. While Gen Z shows a strong preference for aligning their investments with their values, even at the cost of financial returns, older generations who are that much closer to retirement, tend to prioritise higher returns over ethical considerations.
Ultimately, understanding that we have control over how out money is invested can empower people to align their pensions with their values and long-term financial goals, helping them make more informed decisions about their financial future.
✉️ Marie Sterry, Camarco, 07967 734 215/ marie.sterry@camarco.co.uk
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