PENSIONS

“Why is it so difficult to stop your pension money making the climate crisis worse?”

– so asked The Guardian in August 2019. Well, it isn’t anymore. As the first financial adviser to spend 100% of our time on impact and environmental investment we can help. Not only can we help you make a positive difference to the planet with your pension savings, but we also use these plans as part of a creative financial plan for your own financial security and to meet your goals.

Let’s face it pensions are usually seen as complex and boring – hardly a recipe for engagement. But to us, they are exciting and vibrant. Pensions are the “Hey Presto!” of financial planning – often being the key to magically making money appear and taxes disappear. Pensions generally allow you to get tax back when you contribute and get a tax-free or tax-preferred return. They can also be a huge force for good when aligned to our impact investment portfolios.

Fossil Fuel Pensions

Are you worried that your pension is invested in fossil fuels? If you have a pension, you’re already looking after your and your family’s future. But unknowingly, your pension might be destroying the planet’s.

At The Path, we can help. We are the first financial advisers set up in the UK specifically to tackle the climate crisis.

Climate change is one of the biggest threats we face today. Your financial choices shouldn’t cost the earth. Join us and save the planet as you save for your retirement.

 

Ethical Pensions

An ‘ethical’ pension fund aims to achieve positive returns while screening out companies involved in harmful or exploitative activities. Ethical investing generally excludes investments such as alcohol, tobacco, armaments, gambling, and pornography.

However, polluting companies that cause damage to the environment are often seen as acceptable in ethical investment portfolios.

At The Path, we can offer a better solution.

 

Green Pensions

‘Green pensions’ are a bit of a catch-all term to define pensions that help address climate change. At The Path the ‘green pensions’ we offer are positive impact pensions which means we positively include companies that make a positive impact on the environment, contributing to a sustainable future.

We are the first financial advisers set up in the UK specifically to tackle the climate crisis. And we believe investing your pension in a way that helps the climate is one of the biggest differences to climate change that any individual can make.

 

ESG Pensions

In a world where doing good means a better, more sustainable future, Environmental, Social and Governance factors have become an essential measure for sustainability and ethics of a business.

From a company’s green policy to how it treats workers; from supply chain management to company diversity, pay and business ethics; from fostering innovation to aligning corporate culture with transparency and trust, only with rigorous ESG can companies truly revolutionise and be a positive force for change.

 

Positive Impact Pensions

If you want to invest your pension in a way that will help the climate crisis it’s important to know the difference between impact and ethical pensions.

We are the first financial advisers set up in the UK specifically to tackle the climate crisis. And while ethical pensions are certainly a step in the right direction, we go even further. We offer positive impact pensions – which means we positively include companies that make a positive impact on the environment, contributing to a sustainable future.

 

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Pension transfers

Take control of your money and invest it in-line with your ethical beliefs and tailored risk level.

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Pension consolidation

The Path makes combining your pensions into a single pot simple.

Pension FAQ

What are defined benefit and defined contribution pensions?

Defined benefit pension schemes are usually workplace pensions arranged by your employer. They’re sometimes called ‘final salary’ or ‘career average’ pension schemes. The pension provider will give you a certain amount each year when you retire.

Defined contribution pension schemes are usually either personal or stakeholder pensions. They’re sometimes called ‘money purchase’ pension schemes. How much you will receive depends on how much was paid in and how well the investments have performed.

What is the State Pension?

The precise age you become entitled to the State Pension depends on when you were born. You can check your State Pension age on the HMRC website here.

You will pay tax on your pension if your total income (including work, income from property, private and State Pensions) is more than your annual tax-free allowance. Personal allowances change each year and are dependent on age. 

What are personal and private pensions?

A private pension, sometimes referred to as a personal pension, is a product that you can use to save money for retirement. These are usually defined contribution pensions, which means the money you receive at retirement is based on the money you’ve paid in and the performance of your investments.

The Path can help you consolidate your pensions into a new ethical pension plan.

What is a workplace pension?

A workplace pension is a way of saving for your retirement that’s arranged by your employer. Usually both you and your employer have to pay into it under Auto Enrolment rules.

 

What are drawdowns and annuities?

You’re allowed to start taking your pension from the age of 55. Withdrawing gradually through pension drawdown is one of option, another is converting your savings into a pension annuity. Each option comes with different advantages and risks. It is important to weigh these up before making any decision.

Pension drawdown keeps your pension invested, and provides you with the flexibility to dictate your retirement income. The amount you receive will be determined by the fund’s performance and your needs.

A pension annuity works in a similar way to an insurance product and pays out a guaranteed income for a fixed term or until death. When you retire an annuity can be bought using some or all of your pension savings.

How do I find and transfer a pension?

How can I find my pensions?

The Pension Tracing Service: https://www.gov.uk/find-pension-contact-details

How long does it take to transfer a pension?

Typically, it can take around 8 weeks for a pension transfer to complete. In some cases, this can be as long as 12 weeks.

Pension rules

 

Pension Protections

The Financial Services Compensation Scheme (FSCS) is the UK’s compensation fund for customers of authorised financial services firms. It is an independent compensation scheme set up under the Financial Services and Markets Act 2000 (FSMA), and individuals can use it when a financial services firm is unable to pay claims made against it. For more information, you can visit their website here.

The Pensions Ombudsman 

An independent organisation set up by law to investigate complaints about pension administration. They can also consider complaints about the actions and decisions of the Pension Protection Fund and about some decisions made by the Financial Assistance Scheme. For more information, you can visit their website here.

The Pensions Regulator

The Pensions Regulator (TPR) is the UK regulator of workplace pension schemes, ensuring that workplace pension schemes are run properly so that people can save safely for their later years. For more information, you can visit their website here.

The Pensions Advisory Service

Offering free and impartial guidance to people with workplace and personal pensions. For more information, you can visit their website here.

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. This information should not be regarded as financial advice.

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The Path Financial Ltd. Registered in England. Company No. 11583740. Registered office address: The Path Financial Ltd, Watch Oak, Battle, TN33 0YD

Authorised and regulated by the Financial Conduct Authority.

The Path is entered on the Financial Services Register https://register.fca.org.uk under reference 827270.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

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