New research by the national low-cost defined contribution pension provider, the National Employment Savings Trust (NEST), has found that most savers want to see their pensions invested responsibly.
According to research that NEST commissioned, so that it can better engage with and understand the new generation of savers auto-enrolled into workplace pensions, 73% of savers want their pensions invested responsibly and 63% want to hear more about it from their pension scheme. A higher proportion of women than men, 51% to 43%, said that responsible investment matters a lot.
Another finding is that only 28% of savers trust pension companies, with 25% saying they do not. But hearing about how their pension is invested responsibly leads to higher levels of trust and interest among savers. NEST head of responsible investment, Diandra Soobiah, commented: “A potential £495 billion will flow into workplace pensions over the next 12 years, making workers more powerful shareholders with a major stake in how companies and markets are run. They’re telling us they want this money invested responsibly, which could improve the environment and society they’ll live and retire in as well as their future bank balances.” Soobiah added: “The green shoots of a strong pension saving culture are beginning to show in the UK, but people still mistrust the pensions industry. Investing thoughtfully and responsibly could clearly go a long way to building the trust and confidence still needed to help that culture flourish.”