If you want to invest for your retirement and support ethical businesses along the way opting for ethical pension providers is a must. Here’s how to compare ethical pensions to ensure you support a worthwhile business and get a good return on your money.
With pension funds being invested in everything from oil to sugar, in countries from Australia to the Atlantic, keeping track of exactly where your money is being invested can be tricky.
Here’s how find eco pensions that invest in ethical sources without sacrificing the performance of your pension fund.
What is an ethical pension?
Ethical personal pension schemes are specifically designed to support and invest in ethical businesses while still giving you a strong return on your money and growing your pension fund until you come to retire.
This means that certain industries, including tobacco - a traditional mainstay of many pension funds - are excluded from this type of pensions savings.
Instead ethical pension providers aim to focus their investments on green and ethical businesses and in recent years the number of ethical funds you can choose to invest in has grown substantially.
Compare ethical pensions
As with choosing any type of personal pension it is vital to compare ethical pensions from a range of different providers before choosing which account to invest in. This will help to ensure that your ethical investment doesn’t leave you out of pocket.
Look at each funds' previous performance and compare it to how other funds in a similar area have fared. This will give you an indication of how well managed each fund is – but remember just because a fund has performed well in the past it doesn’t guarantee future success.
For more help read our guide: How to find the right personal pension plan.
Check the account fees
If you are looking for an ethical pension fund you will still want to your pension to be good value for money.
Therefore checking the account fees before you choose from the ethical personal pension schemes on offer is essential to make sure you’re getting the best deal.
You can compare the best personal pension scheme providers that support ethical investments using our eco pensions comparison table.
Opt for the ethical personal pension plan that combines low fees with a strong performance history and a range of investment options that you can contribute to with a clear conscience.
