Awareness of the link between pensions and climate change has grown by around 85 per cent in the past year, analysis from Make My Money Matter (MMMM) has revealed, with an increasing number of savers tempted by green pension options as a result.

Research from the group revealed that 51 per cent of savers, representing around 21 million individuals, would choose a green pension if offered one by their provider, up from 44 per cent in 2021, a “substantial” increase of around three million savers.

In addition to this, a further 16 per cent of savers, equal to around 6.5 million people, plan to switch to a sustainable pension over the next 12 months.

Demand was highest amongst younger savers, with over a third (36 per cent) of pension holders under the age of 34 planning to switch to a sustainable pension in the next 12 months, while 67 per cent said they would choose a green pension fund if offered one by their provider.

MMMM also highlighted the results as demonstration that savers not only want their money to stop causing harm to the planet, but to proactively contribute to making a more sustainable future, with over a third (36 per cent) of savers stating that they want their money invested into climate solutions, and 32 per cent keen to invest in green infrastructure.

In light of the findings, MMMM has reiterated its call for the pension industry to make their default schemes green, requiring credible net-zero transition plans for their entire portfolio and increasing investments in climate solutions.

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