Employees aged under 35 said they are nearly three times more likely to know where their pension is invested, according to new research by Ovo.
The home energy, electric vehicle charging and green technology firm surveyed 1,013 people, and found that young people are taking a keen interest in their long-term financial security amid economic uncertainty in the UK.
Almost eight in 10 (78%) respondents aged under 35 said they believe it matters whether their pension is invested ethically, compared to just 34% of employees aged over 65.
Just one in four employees aged over 45 said they know the sectors, funds or organisations that their pension is invested in. Yet only 13% of employees feel very confident that they have sufficient knowledge of how to effectively reduce their carbon footprint, including through their pension.
Many employees who are part of Generation Z said that they feel understanding where and how their money is invested has become a way to respond to climate concerns and financial instability.
The research explained that green pensions are an impactful and accessible way to support climate goals, as they reduce the funds invested in carbon-intensive businesses. It added that they would cut 386 million tonnes of carbon, which is more than the UK’s entire emissions in 2024, according to provisional estimates from the Department for Energy Security and Net Zero.
Julia Diggs, vice president of people at Ovo, said: “Young people are thinking differently about their financial future, they want transparency, impact, and a pension that reflects their values. This research shows just how engaged the next generation is when it comes to where their money is invested. At Ovo, we’re committed to offering a workplace pension that supports our people and the planet. It’s one of the most meaningful ways employers can build trust, attract talent, and support long-term financial security.”
