“People, Planet, Pension”

At EQ Investors, we understand how important pensions are. In the past, a worker might not have considered saving for their retirement until well into their 30’s. Today, however, things are different.

FacebooktwitterlinkedinmailFacebooktwitterlinkedinmail   by Jeannie Boyle, 22nd October 2019

With the increasing withdrawal of DB schemes, a pension should now be one of the first things on a new employee’s to-do list. Indeed, since the introduction of auto-enrolment in 2012, unless they opt-out every worker currently saves at least 8% of their qualifying earnings.

As shown in the New Money pension manual, the power of compound interest – where interest builds on interest – means that getting started on a pension aged 20, rather than 30, can make a difference of nearly £130,000 in a final pot come 55. Those able to save more can benefit even further.

Perhaps even more important than ensuring we have a pension to draw from, though, is ensuring we have a planet to live on when we retire. We founded the Positive Impact Portfolios in 2012 in recognition of the urgent global need to direct capital toward sustainable development and to give anyone the opportunity to do so.

Positive pension difference

Our Positive Portfolios now manage over £100m of our clients savings. In our 2019 impact report, we estimate that for every £1m invested we avoided 228 tonnes of CO2 emissions (equivalent to taking 50 cars off the road); treated 15m litres of water and recycled 24 tonnes of waste material.

Moreover, an investment in our Adventurous Positive Portfolio has returned 55.5% (before fees and charges) for every one of our clients over the past five years to 31 August 2019 – significantly beating the 5% a year growth that is the typical target for most pension and investment funds.

For us, this is really the most important point: not only can saving sustainably save the planet and support communities, it can save your pocket too. Ensuring that our pensions are invested in line with our principles is an urgent task – for both our existential and financial futures.

The New Money pension manual

We’ve sponsored a new guide by New Money which aims to show every single saver and investor that they can affect positive change through their financial decisions. Download your copy below.

 

 

 

About the author: Jeannie Boyle

Jeannie has been working in financial services for over 10 years. She joined EQ in 2008 as a Technical Consultant and since 2010 has been a Director of the firm. When providing advice, Jeannie focuses on clear communication, so that her clients fully understand the facts, options and recommended solutions, enabling them to make well-informed decisions. As a Director, Jeannie concentrates her efforts on ensuring the advice provided across EQ is of an exceptional standard, putting in place processes and systems to ensure our clients remain at the heart of our business. Jeannie is a Chartered Financial Planner, a Fellow of the Personal Finance Society and in 2015 won Money Management’s Ethical Financial Planner of the Year Award. She appears regularly in national and trade media outlets discussing personal finance issues. Outside of work, Jeannie enjoys yoga, hiking, triathlons and live music.
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