5 reasons why you should choose a more sustainable pension

Time flies when you’re having fun!

But we have to face the inevitable in life. As each day passes, we get another day older. You might not want to admit it, but sooner or later, retirement will come knocking.

And while some of us may love to live in the moment, focusing on your Pension contributions sooner rather than later can be a sure-fire way to set yourself up for a better tomorrow, today. Yes, it feels like we’re constantly riding the wave of a cost-of-living-crisis, but the good news is employees are starting to plan ahead.

According to our research, 30% of employees are asking for increased pension contributions, with 28% of businesses saying they now offer increased contributions to retirement funds. That’s all well and good, but there’s no reason we can’t reduce our carbon footprint while saving at the same time.

Opting for a sustainable pension

We love the colour orange!

In fact, it’s in our DNA.

As we look into sustainable pensions and doing your bit for Mother Earth, perhaps it’s time you mix yellow and blue together and go GREEN. Here are our key reasons to consider a more sustainable pension offering for your retirement fund.

If you think about it, our lifestyle choices inevitably impact the world around us.

From changing energy provider to going vegetarian, finding a more eco-friendly approach to life can have a positive impact on not just ourselves, but the wonderful world we live in.

And when it comes to Pensions, it’s never been easier to invest in the future of our planet. 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.

It’s time to follow the crowd!

Our recent sustainability research has 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.

And 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 simply do not care about the issue.

It’s not just Generation-Z that are worried about climate control and the consequences of global warming. It’s hard to turn on the TV nowadays without an alarming message about the risk to our planet.

The media are beating the drum, and the population is starting to listen. Like a domino effect, if one person opts to make a change for the better with their Pension, then it can inspire others to do so.

Gone are the days of complex Pension schemes.

Technology has revolutionised the way we save money, and that little known creation called the internet makes accessing your scheme oh so simple. It’s now easier than pie (for the sake of this blog, a vegetarian one) to find an eco-friendly, sustainable Pension, allowing you to improve vertical credentials.

Out with the old and in with the new.

Before, employees were perhaps reluctant to move to ethical Pension providers because they were worried about poor performance, but the proof is in the pudding.

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.

Perhaps one for the employers!

You wouldn’t think it, but sustainable Pensions can 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, 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 drop of a hat (if you have one), and at the click of your fingers you can find how your Pension is making a difference in the world.

But why stop at just Pensions?

Employees want their company to show the same passion for the environment they do. We’ve found that three in ten (28%) of UK adults think their employer simply 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. And where can you find these benefits?

Zest Marketplace is your one-stop shop for all your benefit needs, providing hand-picked providers including a number of sustainable options. To book a demo, click here.