3rd July 2014
The majority of pension savers would be willing to sacrifice higher investment returns as long as their scheme invested in an ethical manner new research claims.
A survey conducted by the National Association of Pension funds found that while costs and charges are a big priority for pension scheme members, nearly 40% indicated that they were not aware of what their pension provider does with their money between when they put it into their pot and when they eventually take it out when they retire
But while the level of awareness as to where savings are invested is low, there is a significant latent interest amongst scheme members in knowing more.
In its analysis the workplace pension trade body, whose members manage a total of almost £900bn, found that of those saving for their retirement some 53% would like their fund manager to take active role in the companies they invest in, even if it meant greater expense.
In addition, almost three-quarters of respondents, at 70%, felt it important for pension providers to invest in companies that concentrate on avoiding unethical practices, such as poor working conditions.
When prompted on which issues pension managers should prioritise in their dealings with the firms they invest in, 57% cited recent financial performance, while 36% highlighted employees’ conditions and pay and 30% said management pay structures.