The war on single-use plastic, awareness on the environmental impact of palm oil, the USA’s withdrawal from the Paris climate deal, the gender pay gap, the #metoo movement, the rise of veganism, the debate over assisted suicide…. it seems that environmental and ethical issues have been pushed firmly into the limelight in recent months. People are becoming more mindful of the effect of their actions on future generations, but is the world of financial advice ready to meet the challenge? This was the question I asked myself a couple of months ago when I started to prepare advice for a client with a preference for ethical investments.
While pensions and rental properties can both be beneficial in retirement if it comes down to a choice between the two I’d advise a client to use excess earnings to make personal pension contributions.
There’s a commonly held belief that financial advice is only for older people – because they’ve accumulated sufficient wealth to make seeking advice a sensible move and they also start to worry about their income in retirement. Many people in their 20s and 30s have a very limited interest in financial advice, because they either don’t have surplus income or spend it all – and matters like retirement planning seem like a lifetime away.