- Almost nine in ten (87%) of adults in Edinburgh class themselves as ‘climate conscious’
- However, over three fifths (66%) of pension holders are unaware their pension could help fight climate change
- Almost half (46%) of pension holders in Edinburgh want their pension to be invested responsibly.
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New research from the UK’s largest mutual pension and investment company, Royal London, reveals that over three fifths (66%) of pension holders in Edinburgh are unaware that their pension could be invested in ways to help fight climate change.
Only one fifth (18%) of pension holders from the city currently invest their pension responsibly, but 46% say they would like their pension to be invested more responsibly.
What does investing responsibly mean?
Terminology can be confusing. A third (34%) of adults in Edinburgh are familiar with the term ‘responsible investment,’ but only a quarter (25%) per cent actually know what it means and understand its collective power to protect the planet. Men are more likely to be familiar with the term responsible investment than women (69% vs 50%) across the UK.
The power of pensions
A third (33%) of pension holders in Edinburgh said they would consider investing a portion of their pension responsibly. Over a fifth (22%) were willing for over half their pension to be invested responsibly. With one in ten (13%) wanting between 90% and 100% of their pension invested responsibly.
Pension holders across the UK were also asked what criteria they would like a responsibly invested pension to consider, with climate change and protecting the environment (43%) being highly rated in Edinburgh. Social factors such as health and safety (40%) and use of plastic (30%) following closely behind.
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Sarah Pennells, Consumer Finance Specialist at Royal London, said: “It’s encouraging to see that so many people consider themselves to be climate conscious and our research shows that the nation is taking steps forward to improve the health of the planet.
“But we all need to look at our finances and their collective power to do well and do good. From helping reduce emissions to promoting diversity, pensions can be invested to support individuals in retirement whilst helping us all move towards a more sustainable world.”
With over half (57%) of UK 18-24-year-olds wanting their pension investments to harness a more sustainable planet, compared to just over a quarter (29%) of 65-year-olds and over, it’s clear there is still more that can be done to build a better understanding of inter-generational financial resilience for the future.
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Finding out how to invest more responsibly
The research also found:
- Over half (54%) of pension holders in Edinburgh do not know how their pension funds are invested.
- Those who want to find out more about responsible investment would mostly value the advice of financial advisers (28%), free guidance services, such as MoneyHelper (16%), or their family and friends (6%).
- Over a quarter (26%) would carry out their own research to find out about responsible investment.
Royal London’s Invested Generation campaign recently launched a Facebook community https://www.facebook.com/groups/theinvestedgeneration/ which provides a range of support and resources for UK pension holders as to how they can best invest responsibly.
In addition, more information is also available on the Royal London website: