Conscious Capital: 73% Of Employees Want Ethical Pension Investments

55% Of Employees Don’t Know How To Access Ethical Pension Funds

One problem we identified in our report is that, even if employers do offer ethical Workplace Pensions, half of UK employees wouldn’t know how to access them.

• 55% said they didn’t know where to find their ethical pension funds
• 22% would need to ask their employer
• 21% knew where to find these funds
• 15% were unsure of how and where to access them.

Most Workplace Pension providers have at least one ethical fund option, so it’s possible your current scheme does have options for your staff. However, these findings make it clear that employees don’t know where to find information, which suggests a potential communications mishap.

38% Want Help To Find The Right Investment Fund

We then asked UK employees which areas of pension education they’d be interested in. 38% of employees told us they’d like their employer’s support to find the right investment fund for their pension.

That’s over a third of the workforce, highlighting a strong opportunity for employers to provide better pension education and resources. This is something you can help with by supplying information about fund options.

Enabling employees to invest in a way that aligns with their values, you can benefit from attracting a wider range of talent when recruiting.

Nadeem Farid
Head of Health & Wellbeing Benefits

Is Your Workplace Pension Ethical?

With 73% of employees wanting to invest their money ethically, it’s time to revisit your current Workplace Pension scheme to identify if it aligns with your organisation and employee values. Consider the following:

• What kinds of industries does it invest in? E.g. is money invested in companies that contribute to the fossil fuel industry?
• Does it have any ethical fund options?
• Is there a variety of ethical options?

As part of reviewing your pension scheme, don’t forget to take a look at your communications strategy, too.

Many employers select the default fund option when setting up their workplace pension scheme.

However, the default fund may not reflect actual employee preferences. It aims to meet the average person’s attitude to risk and does not cater to individual needs.

Richard Noble
Senior Consultant, Employee Benefits

Your Pension Communications

Our report shows that many employees don’t know how to access ethical funds. What’s more, only 24% say they fully understand their pension and, 25% have no idea who even provides their pension.

To ensure your team gets the most value from their pension, effective communication is key to help them understand their investment options and how to pick the right fund. You can support your employees by:

• Offering 1-2-1 Financial Adviser Sessions
  37% of employees want their employer to provide access to 1-2-1 financial adviser sessions. Financial advisers provide personalised financial planning advice to help staff better understand investment options. They can also recommend suitable fund options based on the employee’s risk profile and preferences.
• Creating A Resource Library
  Create an accessible library of useful pension information. This can include educational articles, videos and interactive tools that explain the different pension fund options. Ensure your employees know where relevant information is located and how to access it.
• Implementing An Employee Benefits Platform
  An employee benefits platform like My.Drewberry allows staff to manage their pension online, offering detailed insights into their current pension status. They can easily see where their money is invested, the specific funds and providers involved. Having all the relevant details at hand can help employees understand their current scheme and if it aligns with their own values.

Get Expert Advice And Help To Review Your Workplace Pension

As employers are legally obliged to provide a Workplace Pension, many companies don’t give it much thought and set it up as quickly as they can. However, by approaching it more strategically and aligning the scheme with your employees’ values, you can turn a mandatory benefit into a highly valuable one.

To ensure your Workplace Pension is providing you and your workforce with the most value, it’s important to regularly review your scheme. Need help with this? Get in touch with one of our friendly pension experts on 02074425880 or by emailing help@drewberry.co.uk.

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