Why we need a New Money movement

by 1 Oct, 2019

The world is changing fast, and it needs New Money. Not for decades have we seen such a spirit of change among people from all over the world, who – unsatisfied with the status-quo – are now taking to the streets to demand governments and businesses do more to make the world a cleaner, safer place for everyone.

However, as groups like Extinction Rebellion march for climate action, they are missing one key demand: that we all – ALL of us – stop funding fossil fuel, mining, big tobacco, arms and other destructive industries through our bank accounts, savings, pensions and investments.

Why? Simply because they don’t know this is happening. Indeed, most of us don’t know this is happening. As is often observed, the level of financial education in the UK is such that most of us have no idea our pensions are invested at all, while few of us consider that the small amount of money flowing through our bank accounts is financing fossil fuel expansion.

New Money Mission

This needs to change. It needs to change because if the world has any chance of achieving the United Nation’s Sustainable Development Goals – essential if we are to have clean air to breathe, water to drink, food to eat and universal access to healthcare, education and opportunity, we need to make sure global capital is financing it.

The good news is, global capital belongs to us. The money that banks and insurers invest is ours, while over half of all the managed money in the world – £32 trillion pounds – is in pensions. In the UK, 70 per cent of the population has a pension: that means seven out of ten people on the street are investors – and they have a say.

The huge power of pensions in shaping the world around us is why The New Money Pension Manual is a cornerstone of the New Money Mission. A jargon free, clear and accessible guide to how pensions work and what savers can do to align them with their principles, we hope it will be a call to action for everyone: not least the industry.

Download The New Money Pension Manual HERE [PDF download].

Motivation for change

For a long time, finance has operated under the self-assurance that change is not necessary, because the average person’s engagement with money is low, which must mean that most savers and investors are not concerned where their money goes.

As the below video from think tank Quiet Room demonstrates, however, this couldn’t be further from the truth.

When people are made aware of where their money is going – they care, and they care deeply. They become highly motivated to make changes and, in today’s digital-first world, this is becoming easier and easier – especially for those members of newer and more disruptive providers.

Obstacles do remain. For example, it may be that once they pick up the phone to their providers, particularly large, well established ones, savers may be dissuaded from making changes due to complexity, lack of availability or perhaps outdated information concerning risk.

This is where New Money and its clients come in. We want to be at the forefront of this movement, helping people to push through these doors and ensure that their money is building a better world. We believe those that join us will be rewarded as the thought leaders and game changers of the future, while those still refusing to move with the times will be left far, far behind.

If you want to join the New Money Movement, get in touch.

About the author

About the author

Rebecca Jones

A financial journalist and communications consultant for nearly a decade, Rebecca has worked across national media, b2b, charities and for the UK’s most established sustainable investment team.