5 reasons why you should choose a more sustainable pension
Sooner or later, retirement will come knocking.
And while some of us may love to live in the moment, focusing on pension contributions today can be a sure-fire way to set yourself up for a better tomorrow.
Nearly a third (30%) of employees are asking for increased pension contributions, with 28% of businesses saying they now offer increased contributions to retirement funds, according to Zest research.
And there’s no reason why we can’t reduce our carbon footprint while saving at the same time.
Opting for a sustainable pension
Here are our key reasons to consider a more sustainable pension offering for your retirement fund.
1. It’s the right thing to do
Lifestyle choices inevitably impact the world around us.
Prioritise funds that have a long-term impact on the environment and feel good knowing you’ve done your bit as you save for a comfortable retirement.
2. Sustainability is becoming increasingly popular
Zest’s recent sustainability research found that half (51%) of employees now want their employer to step up efforts and invest more in sustainability. This figure rises to 61% for younger workers aged 18-34.
Despite over half of businesses seeing the number of employees who care more about sustainability shift, a third (33%) of younger workers believe that their employers do not care enough about the issue.
3. It’s never been easier to switch
Complex pension schemes are a thing of the past.
Technology has revolutionised the way we save money. Because of online access, it’s increasingly easier to find an eco-friendly, sustainable pension, allowing you to improve vertical credentials.
4. You may get a better return
In 2020, Morningstar examined more than 700 sustainable funds and compared them against 4,150 traditional schemes.
The results found that they either matched or outperformed returns in all categories in the UK and abroad.
So, moving to a sustainable pension doesn’t just help the environment, it helps your retirement fund too.
Results can be harnessed by actively engaging with your pension and choosing an ethical provider.
5. It boosts talent attraction and retention
Sustainable pensions can also be key to talent attraction and retention.
Today’s employees care about sustainability. With the world increasingly focused on how it can achieve net zero targets, people rightly expect the company they work for to care too.
Showing that you care means you can engage with the younger demographic of workers, which in turn will improve your hiring power.
Encourage employees to save and think about where their money will be invested.
Before, it was common for colleagues to get one statement each year. Now pension information can be accessed at the click of a mouse.
Why stop at just pensions?
We’ve found that three in ten (28%) of UK adults think their employer doesn’t care about sustainability – and half (51%) have no idea how sustainable their company actually is.
To address this disconnect, we want employers to offer more sustainable benefits, such as the use of electric vehicles and cycle to work schemes.
Zest Marketplace offers hand-picked providers including a number of sustainable options. To book a demo, click here.
In partnership with Zest
Zest is the next generation platform that’s reinventing the world of employee benefits.
