The vast majority of young people would rather work past the standard retirement age than fund industries that harm the planet and society, a new poll reveals.
An overwhelming 86 per cent of Gen Z (13 to 29-year-olds) and 73 per cent of Millennials (30 to 44-year-olds) said they would accept lower returns on their pension savings over helping to finance destructive activities. This compares to just 34 per cent of the general population.
The survey by digital wealth manager Moneyfarm found the industry most Brits want their pension to avoid funding is tobacco (44 per cent). This was followed by alcohol (31 per cent), defence and ammunition (25 per cent), fast fashion (22 per cent) and oil and gas (21 per cent).
However, almost a third (31 per cent) of the nation said they have no ethical concerns about investing in any sector.
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On the whole, investment returns are the priority for most Brits (60 per cent) while just under third (28 per cent) value a scheme which has environmental and climate concerns in mind.
Still, over half (52 per cent) of people said they would not have a clue how to find out if their pension was ethically invested or not. And 43 per cent do not actually realise they have the power to select and choose where their pension invests.
Carina Chambers, Technical Pensions Expert at Moneyfarm, said: “We found that only 23 percent of people we asked were using a pension advisor to help select a pension plan for them.
“Whilst contributing to a pension is a crucial step towards financial security, this research shows that the investment choices that drive the growth of those funds often go unexamined.
“We also see the generational divide in attitudes towards ethical investing is striking. While Gen Z shows a strong preference for aligning their investments with their values, even at the cost of financial returns, older generations who are that much closer to retirement, tend to prioritise higher returns over ethical considerations.
“Ultimately, understanding that we have control over how out money is invested can empower people to align their pensions with their values and long-term financial goals, helping them make more informed decisions about their financial future.”
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