to think you should be told if your money is funding killing people with weapons or tobacco

[wilsonq2]

I had a meeting with the pension guy at work. I bothered to actually look at the detail in the report and realised my savings were funding arms companies and a tobacco company. I was notified and as of next month will me switching to an 'ethical' plan.

Aibu to think they should of told me this, when I joined I was just given three options, adventurous, normal and risk adverse and so chose the normal.

This applies to normal savings accounts as well as pension funds. The savings on deposit are lent out to companies dealing in all sorts of things.

(I used to work for an ethical bank before having children)

They wouldn't have notified you because companies that invest in less than ethical concerns make a larger return. Like you I don't like the idea of investing money in non ethical companies. There are loads of ethical funds around if you look for them on google.

But they did tell you - it was in the brochure. So yes, YABVU to expect them to do something they already do.

Of course, had you not bothered to read the bumf you would still have BVU, and daft to boot!

The UK government buys weapons with your money too. I suppose they're a bit more up front about it though.

So they did tell you but you only 'bothered to read the brochure' now.

The Co-op makes a big deal about its ethical banking. It's not a stretch surely therefore to assume the other banks aren't so ethical given their utter silence on this matter...

Aibu to think they should of told me this

No, but you could have asked

Well no they didn't tell me where it would be invested when I signed up, its only by reading the statement I found out.

Although now I'm switching to the ethical funds, but the biggest company they invest in is HSBC who with their Mexican friends don't sound too ethical. That it s my only choice with this fund if I want my employer to contribute.

But??? Didn't you do any research prior to the meeting?

And, realistically, how much of a dividend hit are you willing to take?

Like you I have no choice if I want my employer to contribute, so I made other choices with other savings. That way I balance my conscience with my need for a good return.

Argh... that should have ended with, being ethical is all well and good if you can afford it, but, as always, charity begins at home - and no-one should feel guilty for ensuring they themselves don't starve for their ethics. That way lies insanity!

I did do some research, but working full time and being handed a was of paper, its difficult to read it all.

I will be transferring to an ethical fund from Nov payments onwards, I just would hate to be helping some companies.

Ever buy a CD, electronics, chocolate... You probably are funding weapons, environmental damage and slavery. You do really need to do research about EVERYTHING if you want ethics in money.

Most investment is unethical, you shouldn't really need that to be spelled out to you.

It's great that you want your pension to be invested ethically, but think very carefully about whether you can afford it. Principles don't always come cheap, we'd all have our pensions invested ethically if it were that simple.

Yes, and companies which make "ethical" things employ people who may save for their pensions in unethical plans . . . where do you stop?

And let's not get started about what is and is not ethical. No two lsits will be identical.

Trouble is, unethical companies are generally very profitable so your pension or investment will generally perform better.
Ethics are a pain in business and your pensions guy at work is probably just trying to get the best for you. If you are particularly concerned about stuff like this and manage your affairs yourself rather than just blindly trusting the works pension.

Hold on. You were told. It was in the brochure. That you didn't read it sooner is not your pension fund's fault. Their legal obligation is to get the best financial return they can for you and if that means arms and tobacco then so be it. If you want an ethical investment then, for its own protection, they fund is going to make you ask for it. YABVU.

I wasn't told it in the brochure, it never mentioned anywhere the type of company's its investing in.

Anyway the only different with the ethical is not In vesting in company's that ki!l people, 95% of the portfolio is the same so doubt on my small penswiomn it will make much difference

Their job is to get you the best return they can on your money, that means investing without restriction by default. If they avoided unethical companies by default they would probably get into trouble for not maximising your growth. Ethical investment is therefore opt-in, you need to choose it specifically and accept the likely lower returns.

If you had made the effort to ask earlier, you would have found out. If ethical investment is something that bothers you, you should have done proper research before deciding.