Workplace Pensions: How to Promote Change when Inertia Stands in the Way
In a recent compelling piece by Lois V. Vallely at Money Marketing, the stark realities about UK savers’ #sustainability intentions -- versus #ESG-led investment actions -- is elucidated for all to see.
As she notes in her piece, “although most savers say they want their #pension to be invested responsibly, very few people auto-enrolled into workplace schemes have moved their investments to #sustainable funds.”
Professional Services consultancy Barnett Waddingham recently conducted research and discovered that 80% of people in workplace pensions have never made any changes to the funds they invest in, with only 11% more changing funds once. This suggests a mere 9% have proactively handled their pension investment matters.
The implication? Inertia runs riot in the £8B #UK pension market, and without either the investment defaults shifting to ESG-centric funds or a concerted shift in savers’ #finance management behaviours, little change will ensue.
Given that behaviour is difficult to shift, “transitioning default #workplace pensions to ESG funds” would create high impact, in short order.
Here’s to the few players in the pensions industry already facilitating that change. How swiftly can we get others to follow suit?
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