You might think your pension is just about making sure your retirement is comfortable - a pot that you save into until you’re ready to stop working and start withdrawing. But something many people may not realise is that pensions are investments that are shaping our world right now. If you have a pension, you’re already an investor, and that gives you more power than you might think.
The hidden power in your pension
When you check your pension statement, you see numbers, percentages, and projections. What you don’t see is that your money is actively working - invested in companies, projects, and initiatives around the world. Your pension fund might be supporting renewable energy projects or backing healthcare innovations. It could even be funding industries that don’t align with your values.
Depending on where your pension is held, you can direct that power. Just as you make conscious choices about the products you buy and the causes you support, you can align your pension with your values. It’s not just about avoiding harmful investments; it can also be about actively supporting positive change.
Understanding your investor voice
Your pension provider acts on your behalf as a shareholder in numerous companies. The fund managers vote on important decisions on your behalf and in alignment with your values. Collectively, pension funds own portions of the world’s largest and most recognised companies. When enough people speak up about gender equality, fair wages, or climate action, companies listen. Your voice, combined with others, can influence corporate behaviour.
Making your money match your values
The rise of Environmental, Social, and Governance (ESG) investing has opened up more possibilities for those who are conscious of these issues.
Innovative providers like PensionBee are leading the way with specialised investment options. Their Climate Plan is an example of this, taking an approach that isn’t just about avoiding fossil fuels but also:
actively reduces investment in carbon-heavy companies;
targets a minimum 10% reduction in greenhouse gas emissions each year;
aligns with the Paris Agreement’s goals;
excludes businesses with fossil fuel reserves; and
screens out businesses heavily dependent on fossil fuel operations.
For women concerned about climate change, this represents a tangible way to contribute to environmental solutions while building retirement savings.
Here’s how you can take action:
First, understand where your money is currently invested. Request an investment breakdown from your pension provider. Many are surprisingly transparent about their holdings. Some even have online portals where you can view this information. If you’re a PensionBee customer, you can view the top 10 holdings of your plan on their blog.
Next, research your options. Most major pension providers now offer ethical or sustainable fund choices. These might focus on companies leading in environmental protection or social justice. Some funds specifically support women-led businesses or companies with strong female representation in leadership.
If your current pension provider doesn’t offer suitable options, consider switching. There might be other options on the market that better align with your values. The process is usually straightforward and many providers only need a few details such as a provider and policy number to get started.
Impact without sacrifice
A common concern is that ethical investing might mean lower returns. However, research increasingly shows that companies with strong ESG practices often perform as well as - or better - than their conventional counterparts. They tend to be better managed, more innovative, and better prepared for future challenges.
Think about climate change, for instance. Companies that are already adapting their business models and reducing their carbon footprint are likely to be more resilient in the long term. While companies with diverse leadership often make better decisions and show stronger performance.
The ripple effect
When you align your pension with your values, you’re not just planning for your own future - you’re helping shape the world you’ll retire into. Your investment choices can support companies working to address climate change, promote gender equality, or improve healthcare access.
As more women take control of their pension investments, we send a powerful message to the financial industry. We show that we care about more than returns - we want our money to make a positive difference.
Your next steps for taking action
Review your current pension investments. Contact your provider to see a detailed breakdown of where your money’s invested.
Research ethical options. Ask your provider about their sustainable or ethical fund choices. If they don’t have any, consider whether this aligns with your values.
If you have previous pension pots, consider consolidating them into one place that aligns with your values.
Philly Ponniah is a Chartered Wealth Manager and Financial Coach who helps women build confidence around their money. Having worked in the wealth industry for almost 13 years, she now helps high-achieving women get financial clarity, so they can live well today while building wealth sustainably for the future.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. Past performance does not guarantee future results. This information should not be regarded as financial advice.
