So - what does it mean to have an ethical pension?
Today, more of us than ever are considering our impact on the world at large, whether environmental or social.
Ethical pensions are retirement saving schemes that work towards a sustainable future whether that be for our planet, the people who live in it or both. Investments in a fund of this kind are carefully selected to have a positive impact – or, at least, no negative impact – on the wider world.
Responsible pensions are generally appraised by the pension provider via the application of “ESG principles”. This stands for:
- Environmental practices
- Social impact
If a scheme scores high in all three, it can be officially considered “ethical”.
Why Should I Think About My Pension?
It’s always highly advisable to spend time speaking with a professional adviser and researching pension schemes in order to select the pension fund that will best meet your needs in retirement.
There are specialist schemes for those who are in employment, those who are self-employed, those who’d prefer to receive their payouts by way of an annuity, those who would benefit more from a drawdown… the list goes on.
By carefully selecting the right pension, you’ll be able to make your money work as effectively as possible over the years, which means you’ll be heading for a comfortable and easy retirement.
Along with the standard considerations when it comes to choosing a pension, Hilltop Finance also recommends seeking out a fund that supports your ethics. Find out more here with our guide to Ethical Pensions.
Benefits Of Having An Ethical Pension
Eco-friendly pensions are an easy way to do your bit for the planet. They’ll keep working in the background without you having to do anything at all.
What’s more, the more socially conscious or “green” pension funds are selected by members of the general public, the more greatly their combined impact will be felt worldwide.
For example, some pension providers offer opportunities to invest in organisations that develop products in the medical field, in order to improve the standard of healthcare around the world.
Others support businesses that practice fair trade or work to prevent the exploitation of certain communities or environmental resources. In this way, they help to fight human rights violations, deforestation, pollution and other negative global issues.
Ethical pension providers can also enable their customers to withhold support from organisations that are likely to have a negative impact on the environment, on the rights of their employees or on ethical trading standards.
We have the answers.
Have a look over our frequently asked questions, and if you can’t find what you’re looking for simply get in touch with our friendly team who are here to answer any questions you might have.
The team at Hilltop Finance are highly experienced in providing advice regarding ethical pensions. Get in touch with our specialists today.
You can find the most ethical pension funds by applying the ESG principles to them – namely: environmental practices, social impact and governance – to see how they measure up.
You can also ask your pension provider for their recommendations or make contact with Hilltop Financial for assistance.
Visit your pension provider’s website to learn more about the product you are currently using. If there is no clear information, make contact with your provider directly.
An ethical pension fund is a means of saving towards retirement in a way that actively supports socially responsible and environmentally friendly practices and avoids unethical investments.