Under 30s twice as likely to choose ‘green pension’

Written by Theo Andrew

Almost one fifth of pension savers would opt for a “green pension”, with those under 30 twice as likely to choose the eco-friendly option than those over 50, PensionBee research has found.

In a sample of 1,677 of the firm’s customers, 17 per cent said they would choose an ethically invested pension. Of those, 19 per cent of were under 30, compared to just 10 per cent of over 50s.

The proportion of eco-friendly savers grew down the demographics, with 15 per cent of 40 to 49-year olds opting for a green pension and 18 per cent of 30 to 39-year olds.

PensionBee CEO, Romi Savova, said: “As awareness of eco-friendly products continues to grow and savers are offered more choice, we expect an increasing number of customers to opt for a greener pension. We intend to lead the way for other pension providers, helping savers build a better future for themselves and the environment.”

The research also revealed that there is no divide between men and women when it comes to eco-friendly investing, with 17 per cent of both saying they were in favour of the Future World Plan.

The plan was launched by the firm in October 2017 and focuses on investing in companies that generate revenue through low-carbon initiatives.

Legal & General Investment Management head of defined contribution, Emma Douglas, said: “It is reassuring to see PensionBee’s research shining a light on current attitudes towards environmentally friendly pensions.

“We’ve seen a marked change in attitudes from savers who want to use their pension to help create the future they want to retire in. We have designed our Future World Fund specifically for savers who want to invest responsibly whilst at the same time protect their money from risks associated with companies who have poor environmental, social and governance profiles.”

Last week, the government increased its support for trustees around social impact investing and aspires to schemes targeting a “minimum percentage allocation” towards green investments.

In its response to the Advisory Group’s report, A Growing Culture of Social Impact Investing in the UK, the government said it would like members views to be “more seriously considered" and that it will work with regulators to explore news ideas.

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