‘Gen X’ savers have led the charge to a new Impact Pension at PensionBee, defying expectations that younger generations are more likely to buy into sustainable finance options (1).
Specifically, PensionBee customers who fall into the ‘Younger Generation X’ (1973-1980) category, were the first to sign up for the new Impact Plan, which today opens up to the wider public.
Thousands of the leading online pension provider’s existing customers have committed over £50m in advance of the fund’s launch (2).
The average age of a customer who has already committed to PensionBee’s Impact Plan is 42, challenging the perception that interest in impact investing is strongest among young adults, such as ‘Younger Millennials’ (1989-1996) or ‘Generation Z’ (1997-2012). The age range of customers switching into the plan spans from 18-70; as interest extends from those at the beginning of their pension saving journey all the way through those nearing or at retirement age.
Half of Impact Plan customers have transferred from PensionBee’s Tailored Plan, its default fund, highlighting the universal appeal of this new product and its ability to drive greater engagement in pension saving over the long term.
PensionBee’s Impact Plan is an innovative pension, which enables savers to invest in companies that are building a better future for the planet and society. It offers customers access to public-markets impact investing, allowing them to redirect their savings towards companies that are providing solutions to the United Nations Sustainable Development Goals and the transition to Net Zero.
The new plan is PensionBee’s third responsible investing option, from a total of eight plans. It joins the Fossil Fuel Free Plan, which completely excludes firms with proven or probable reserves of oil, gas or coal, and the Shariah Plan which only invests in Shariah-compliant companies.
Clare Reilly, Chief Engagement Officer of PensionBee, commented: “This latest innovation is built to drive positive change; in sustainable pensions, the financial system and the world around us, all whilst building a healthy pension for retirement.
Our customers show the market that impact investing is not just the preserve of younger generations, and that all savers want ways to invest in line with their values.
We’re thrilled to be launching our new Impact Plan thanks to the support of our customers. They have made this possible, by telling us how they want to see their money invested, helping shape that vision and then pledging to invest in the fund to make it a reality.”
Eric Rice, Head of Impact Investing at BlackRock, commented: “We are excited to launch this Impact strategy with PensionBee. This solution is built to meet PensionBee’s requirements based on their customer research using our team’s Impact expertise. It reflects BlackRock’s continued commitment to listening to our clients, helping them navigate their sustainability journey and demonstrates our ability to provide our clients choice, including sustainable outcome-oriented investing”.