Six reasons to switch to a green pension
You get employed, your new company sorts out the pension. And then every year after that you get a 30-page pack through the door from a bland pension company stating you'll get £3 per month when you’re old and grey.
Let’s be honest. Pensions are boring.
Yet your pension has the power to shape our future.
That may sound like an overstatement but research published by MotherTree reveals that switching your pension to a green provider is the single most effective action individuals can take to fight the climate crisis.
In fact, switching your pension from the default option to a green alternative is ‘57 times better than going vegan in reducing your carbon footprint’.
Unconvinced? Here are six reasons why you should switch:
It’s never been easier to make the change. It’s simple to switch your pension, either to a green plan with your existing provider or to a new provider. Simply head to our calculator to see your options. Transferring to a new supplier can take a couple of weeks while the providers sort out the paperwork.
There is more choice than ever before. Green pension plans are offered by some of the large providers (Aviva, NEST, & Scottish Widows) as well as some newer companies such as Cushon and PensionBee. SIPP options are available with fund managers like The Path offering pension schemes dedicated to tackling climate change.
Change is happening: 68% of UK savers want their investment to consider people and the planet alongside profit.
The big guns are divesting from fossil fuels. The UK's biggest pension fund, NEST, began fossil fuel divestment in July 2021. And it’s gone global: Japan's Government Pension Investment Fund has supported major green projects since 2019.
It’s good for your wallet: Sustainable pensions are around the fastest growing world wide. According to research by Morningstar, sustainable funds matched or out performed non-sustainable funds over the past 10 years.
Policy is catching up: In June 2021, the government announced that pension scheme trustees would, in future, be required to assess, and publicly report on, the risks of climate change to their investments. By October of 2022, 81% of occupational pension scheme assets will be assessed and the disclosures will be published in the months that follow.
But most importantly, only you have the power to make the change.
By simply picking up the phone or going online you can bring a better future to all of us.