When it comes to financial planning for retirement, it is all about taking a long-term view with your money. Have you ever wondered what happens to the money you save into your pension?
It doesn’t just sit in a bank account. Rather, it’s invested, with the aim of it growing over time. This is important so you can have enough money to actually retire. However, what many people don’t realise is that your retirement savings can also have a positive impact on the world around us, through sustainable investing.
Sustainable investing aims to invest in companies that do good for people and the planet as well as creating a profit. If invested wisely, your money can do good, without compromising on growth – and more and more people are expecting their retirement savings to be invested in this way.
In real terms, it means supporting energy businesses that make clean renewable electricity, for example, and companies that treat their workers well and look after the world around us. It can also be described as ‘ESG’ (Environmental, Social and Governance) or responsible investing.
Do you think about sustainability when making decisions at home? For example, whether you buy something with plastic packaging, check how energy efficient your appliances are or worry about using retailers which have poor worker conditions? You might have made the leap to thinking about the sustainability of your bank account but not to your pension provider, where you could have much more invested. The impact you could have by investing your pension fund sustainably could magnify the efforts you’re already making. Visit Make My Money Matter.
Our priority is growing your pension savings and we believe to do so, we need to make sure we are investing in companies that are taking into account the environment and people. These companies are more likely to be around in the future as they keep pace with important climate and worker regulations and are making a positive impact on our world. By investing in these companies, you’re not only helping to secure your financial future, but also making the world a better place.
To see how sustainable your pension savings are, sign in to your Smart Pension account today.
The information, money-saving tips, tools and techniques provided are for guidance purposes only and do not constitute financial advice. Where we provide links to third-party websites we are not responsible for their content. It is therefore important you carry out your own independent research.
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