Most UK pension savers want their money to work for society

18 February 2025

More UK pension savers are now looking for their money to support projects that benefit society, new research has found.

When thinking about your pension, the main priority is likely making sure it grows enough to support your retirement. And for 90% of UK pension holders, getting a good return is the most important factor when it comes to investment.

But a new study from Nest Pensions has found that many savers also care about where their money is invested. Around 81% of those surveyed said it’s important their pension is used to fund projects that benefit society.

Younger savers show greatest interest in ethical investing

While people of all ages showed an interest, those aged 25 to 34 had the greatest interest in where their pensions were invested.

The study also found that 67% of pension holders know where their savings are being used, with younger workers being the most informed. 

It’s clear that younger generations are leading the charge when it comes to ethical investing. Separate research from Moneyfarm found that the vast majority of Gen Z (86%) and Millennials (73%) would rather accept lower returns and work longer than see their pensions fund industries they believe harm society or the environment. 

In contrast, only 34% of the general population feel the same way, highlighting a stark generational divide.

The industries people in the UK most want to avoid investing their pensions in are:

• Tobacco – 44%

• Alcohol – 31%

• Defence and ammunition – 25%

• Fast fashion – 22%

• Oil and gas – 21%

However, just under a third (31%) of the population said they have no concerns about investing in any sector.

Elizabeth Fernando, Chief Investment Officer at Nest, explained: "Getting a good return is, of course, the main concern for pension savers. But it’s great to see a growing interest in using pension funds to support projects that deliver social value as well as financial benefits."

Could your pension be making a difference?

With pension funds managing billions of pounds, where this money is invested can have a big impact - not just on your future but on the wider economy. Many UK pension savers now welcome the idea of their money being used to support UK businesses and local projects while still securing strong returns.

Despite the growing interest in ethical investing, over half (52%) of those surveyed in the MoneyFarm study admitted they wouldn’t know how to check if their pension was invested ethically. Some 43% weren’t aware they could even choose where their money is invested.

If you’re curious about where your pension is invested, it could be worth checking with your scheme provider. Some schemes offer ethical or impact investment options, so you can choose a fund that aligns with your values.

Sources

81% of those surveyed said it’s important their pension is used to fund projects that benefit society: Growing interest in pensions delivering societal benefits. FT Adviser. Accessed 13 February 2025.

Majority of Gen Z (86%) and Millennials (73%) would rather accept lower returns and work longer than invest unethically: Gen Z and Millennials would rather work past retirement than have a non-ethical pension. Money Marketing. Accessed 13 February 2025.