We’ve received many queries from members asking about the sustainability of their pension pots with us in recent years. It’s something we’ve been working hard to improve and, between 2023 and 2024, we introduced our new range of sustainable investment options.
Most Creative Pension Trust members use our ‘default investment strategy’, leaving the investment decision-making to us. Our new strategy, Cushon Core, has the primary goal of growing your pension pot, but doing it in a much more sustainable way.
How Cushon Core works over time
When you’re younger, Cushon Core mainly invests in global equities – leading companies from all over the world with high growth potential – and in some global bonds. This mixture of investments is designed to give your pension long-term growth.
As you head towards retirement, we start shifting your investments to bonds and cash, aiming to protect your pot from the bigger ups and downs that occur in investment markets from time to time. We start these changes 7 years before your Target Retirement Age. This is 65, although you can change it to suit your plans using the Creative Pension Trust Member Portal.
Growth Phase – Investing with a positive impact
We invest your pension in a way that does far less harm to the planet. Cushon Core aligns with the United Nations Sustainable Development Goals (SDGs), which means we prioritise investments in companies with greener, more sustainable practices. You benefit from long-term growth while contributing to a cleaner, more sustainable future.
We’re not only committed to securing your financial future, but also ensuring a sustainable world for you to retire into. We see climate change as a financially material risk. Put simply, we believe the risk posed by a changing climate is not being accurately reflected by the market and asset valuations may be impacted over time.
Therefore, we are striving to build climate risk resilience to your pot by carefully minimising our exposure to the losers, and capturing the potential winners (such as clean energy generation) of a transitioning global economy, with the goal of maximising your pot for retirement.