82% of savers think pension providers have not been transparent

Over a third (34 per cent) of UK savers want pension providers to be more transparent about the companies they invest in, with 82 per cent stating that their pension provider has not been transparent about where their pension is invested, research from NerdWallet has found.

The survey also found that nearly nine in 10 (87 per cent) UK savers would be unhappy for their workplace or personal pension to be invested in companies with poor social or governance record, increasing to 88 per cent for poor environmental records.

Almost eight in 10 (79 per cent) said that they would take issue with their pension being invested in a fund or company that is not ethical, even if it is delivering a good return, while one third (33 per cent) want all pension providers to offer an ethical fund option.

However, it also found that 85 per cent do not know where their pension is invested and only 11 per cent have specifically chosen ethical pension funds.

In addition to this, around 23 per cent said they are confused about how to invest ethically, and 81 per cent did not know that it is even possible to use their pension to invest in ethical companies.

Despite this, most workplace and personal pension holders remained optimistic about the power of their pension, with 82 per cent agreeing that investing their pension ethically has the potential to influence how companies behave.

NerdWallet senior pensions expert, Richard Eagling, commented: “It is encouraging to see that so many people feel that their pension can be a force for good.

“While more individuals are feeling empowered by their pension and feel strongly about the impact their money can have, there is still a lag in turning these attitudes into positive action.

“Greater transparency around where pensions are invested and more guidance about how to invest ethically will be key to ensuring that more individuals are able to align their pensions with their principles, enabling them to benefit society as a whole.”

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