Stephen Fry joins celebrities urging people to switch to green pensions
The Guardian covers a celebrity initiative to call on the public to harness the untapped power of their pensions to tackle the climate crisis.
The campaign puts forward the conclusion of research published in the summer. This suggests making your pension green is 21 times more effective at cutting your carbon footprint than stopping flying, going vegetarian and switching to a green energy provider combined.
We have recommended to our clients a range of ethical investment solutions, including our own portfolios.
Almost a third of people do not have enough to cover three months of essential expenses as survey reveals the best savings accounts providers
The Daily Mail covers Which?’s annual survey on the best savings account providers. This revealed nearly a third of Britons do not have enough savings to cover three months’ worth of essential expenses in the event they were left without income.
You can find our coverage of having an emergency fund here.
Want to move a ‘with-profits’ pension? You’ll lose a fifth of your pot
The Times has a story about The three million savers holding controversial “with-profits” pensions could lose a fifth of their money if they move their pot elsewhere.
These savings plans were popular in the past but lack transparency and have delivered high charges and poor returns for some.
Whilst these funds invested into a mix of assets akin to any robust portfolio, the selling point of with-profits funds was their smoothing. This was where they held back some of the returns in good years to boost bonuses in lean ones.
Savers are locked in for a set term, usually to retirement. Before this point, anyone transferring elsewhere could be hit with penalties. An example of such a penalty is a Market Value Reduction. These are usually applied where the underlying value of the portfolio the fund invests into is less than the value of the fund. Anyone holding the fund for the long term might expect the gap to narrow. However, those transferring out would worsen that situation.
We are experts at looking at these types of plans and I would strongly advise anyone thinking about transferring out of with-profits to get professional advice.