Hot Pension Topics

Responsible Investing

From recycling our rubbish, to using the car less often, many of us are making small changes to our daily lives to reduce harm to the planet. Many investors also prefer to see their money invested in funds which do no harm to the environment or which actively encourage diversity in the workplace.

There are three strands to investing responsibly

1. Environment – which covers issues relating to protecting the planet.

2. Social – which are issues that affect the fair treatment of people.

3. Governance – which is about the way companies are run.

Together, these are known as ‘ESG’ issues.

ESG is a financially-driven investment philosophy, focussed on driving returns through investment in sustainable companies. It is based on the belief that these factors are critical to a company’s future financial performance and the theory is that companies that don’t impact the environment, have a social conscience and are well-governed will out-perform other companies. You can find out more about Legal & General’s ESG policies here.

There are a number of self-select funds available to you that focus on specific ESG or responsible investment goals. You may also come across ‘ethical’ investments which specifically exclude certain companies, sectors, countries or business activities. For instance, an ethical fund may apply negative screening which avoids investing in industries involved in tobacco, fossil fuels or controversial weapons.

You can find a full list of Legal & General’s (WorkSave Pension plan – generation 3) funds via here.

Pension Scams!

Scammers can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing.

Scammers design attractive offers to persuade you to transfer your pension pot to them or to release funds from it. It is then invested in unusual and high-risk investments like overseas property, renewable energy bonds, forestry, storage units, or simply stolen outright.

Four simple steps to avoid pension scams.

Step 1 - Reject unexpected offers

Be wary if you’re contacted by phone, email or text about any financial product or a free pension review or pension opportunity. The safest thing to do is hang up or ignore them.

Step 2 - Check who you’re dealing with

Check the Financial Services Register to make sure that anyone offering you advice or other financial services is FCA authorised, and that they are permitted to provide you with those services. If you need any help checking, call the Consumer Helpline on 0800 111 6768 or log on to www.fca.org.uk/scamsmart/how-avoid-pension-scams.

Step 3 - Don’t be rushed or pressured

Take your time to make all the checks you need – even if this means turning down an ‘amazing deal’. Be wary of promised returns that sound too good to be true and don’t be rushed or pressured into making a decision.

Step 4 - Get impartial information and advice

You should seriously consider seeking financial guidance or advice before changing your pension arrangements.

  • MoneyHelper provides free independent and impartial information and guidance.
  • If you’re over 50 and have a defined contribution pension, Pension Wise offers pre-booked appointments to talk through your retirement options.