Nearly half of employees want their pension invested in areas such as health, social care and housing, a new survey has revealed.
The report, commissioned by Big Society Capital, found that while nearly three-quarters of people with a Defined Contribution (DC) pension want to know where their pension pot is invested, two in five admit they know little or nothing about it.
Of those surveyed, 46% said they wanted their pension invested in organisations that reflect their social and environmental views, with health and social care, environmental projects and housing being the top areas of preferred investment.
Nearly a third of employees surveyed said they would save more if they had a social pension, with 40% saying their would want their pension money moved if the investment didn’t match their values.
Simon Rowell, a senior director at Big Society Capital, said: ‘Clearly people care about where their pensions are invested, but the current system is not working for many who are not engaging and not saving enough for their retirement.
‘A new generation of social pension funds could help people redirect their pensions to causes and companies they believe in. This could not only increase saving and engagement between employees, employers and pension providers but help build a stronger society as well.’
