PensionsJan 28 2020

Savers want transparency on pension assets

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Savers want transparency on pension assets

Savers want more information about which companies their pensions are invested in with a majority calling for an active screening approach towards tobacco, weapons and oil companies, according to research.

Research from online pension provider PensionBee, published yesterday (January 27), found savers are generally concerned about where and how their pension fund is being invested, with 80 per cent calling for a more transparent approach to pension investments.

Out of the 2,000 savers surveyed, 61 per cent said they want to see an active screening approach towards tobacco companies, with more than a third (35 per cent) saying they would remove these companies from their investments.

Three in five would also like providers to remove companies investing in banned weapons.

Almost two thirds said they want their provider to take a “consequence approach” when investing in oil companies, to see which companies have the least damaging effect on the planet, with 15 per cent of savers saying they were likely to stop investing in these companies.

But PensionBee suggested there was a growing gap between the views of pension savers and the default funds providers offer.

Clare Reilly, head of corporate development at PensionBee said: “It’s critical we address the gulf between the views of modern savers and the pension options on offer. Our customers have made their voice clear: pension savers should benefit financially and socially from their investments. 

“We do not want government reforms for environmental and social concerns to be reflected in pensions to become a tick-box exercise.” 

According to the research savers generally want providers to engage with the companies their funds are invested in both privately and through public voting, but 12 per cent of those polled called for a straight removal of companies based on ethical concerns.

Younger savers were more likely to take action with 44 per cent of those aged 30 and under being in favour of outright removal of companies that are accused of breaking international laws, compared with 35 per cent of those over the age of 50. 

Romi Savova, chief executive officer of PensionBee said: “Pension investments have the ability to transform the world we live in while generating healthy returns for savers.

"We are ready to kickstart the necessary change and will be considering appropriate actions for our investment plans following these survey results.”

amy.austin@ft.com

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