Written by Mary Hemingway, Independent Financial Adviser at Truly Independent
‘Code red for humanity’ was the stark message from the recent IPCC climate change report, it has sparked some essential conversations about how we can all make a meaningful difference. And while we are bombarded with easy eco switches we can make, what unsustainable habits to ditch, which fabric softener is most polar bear friendly there is very little being said about a huge powerhouse we all have control over…
There is an estimated £6.1 trillion of private pension money in the UK! Most of us have at least one pension, from Apprentices to CEOs, we are all encouraged to build our private pensions via workplace contributions but very few people take an active role in how their pension pot is invested and what industries and companies our money supports.
Over the last 5 years that I have specialised in pension planning in the Borders, I have seen a huge change as greener investments become more mainstream following increased demand from pension savers. The great news is you no longer have to sacrifice the long term growth of your pension or pay huge fees if you choose more environmentally friendly investments, and the more people invest this way the economy of scale brings the cost down for everyone!
When choosing how to invest your pension you should always consider your own retirement plan: How long do you have until you need to access the money? How much income will you need when you retire? How do you feel about potential losses as well as gains? – Investments can be volatile so taking a level of risk you’re comfortable with is essential. But now alongside these important questions, I strongly feel we should ask ourselves “What difference can our pension pots make to the wider world?”
Ethical and environmental investments aren’t perfect but if we all made a small shift towards earth-friendly investments we will see a difference. As well as sending a very clear message to policymakers by voting with our money!
Lastly, I would always recommend you get independent and FCA regulated advice when considering a change to your pension. If you have any questions about green investments and pension planning please do not hesitate to get in touch: https://trulyifa.co.uk/mary-hemingway/ firstname.lastname@example.org