ONE in four people still mistrust the pensions industry, according to a report which found a strong appetite among workers for their money to be saved with ethics in mind.
Nearly three-quarters (73%) of people think that it is important their pension scheme considers the environment, society and corporate behaviour when they invest their money, a survey of members of workplace pension scheme Nest found.
However, general levels of trust in pensions among savers are low and seem unchanging, according to its report.
Nest also carried out a separate survey of working people who are eligible for automatic enrolment into workplace pensions.
That survey found that a quarter (25%) of people say they do not trust pension companies, “showing little improvement over the last four years”.
More than a third (37%) of people say they now consider the quality of their employer’s pension when deciding where to work.
The new survey data is published in Nest’s annual responsible investment report, which looks at how members’ money has been invested responsibly throughout the year.
Diandra Soobiah, head of responsible investment at Nest, said: “The green shoots of a strong pension saving culture are beginning to show in the UK, but people still mistrust the pensions industry.
“Investing thoughtfully and responsibly could clearly go a long way to building the trust and confidence still needed to help that culture flourish.”
Nest surveyed more than 5000 members as well as more than 1000 people across the UK generally who are eligible for automatic enrolment.
Esther McVey, the UK Government’s Work and Pensions Secretary, believes that despite issues of trust, rates of people investing in their pensions suggest that savers are still being attracted to the pensions industry.
She commented: “In the last six years almost 10 million people have automatically enrolled into a pension scheme, and the number of members of an occupational pension scheme has increased by almost 50%, up to 41.1 million in 2017.
“And these savers, particularly new younger savers, are wanting a say in where they put their money.
“Technology, transparency and the new changes that we have introduced make it easier to do that by accessing information about the nature and sustainability of investments.”
McVey also acknowledged the concerns of modern-day savers, who are eager to invest in firms which share their values.
She added: “We are putting power back in the hands of individuals, giving them the ability to see where their money is going and choose what investments they want to back.
“Increasingly, people are looking to support companies whose values align with theirs, environmentally and socially, giving them a say and a stake in a future world.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here