Green Retirement Plans

     Planning a green retirement is a fairly new subject. Retirement planning is something that is important, but there is increased focus on getting there via ethical practices. There are socially responsible retirement (SRI) plans being offered by employers through various agencies. Now, employees and others are beginning to tap into green plans, such as green 401(k) plans and making their views known to employers and investment firms.

     According to Rona Fried of SustainableBusiness.com, SRI options for retirement plans are still only offered to about 20 percent of employees, but that’s changing fast. One survey found that more than two-thirds of employees want such choices. A 2007 survey found that 60 percent of benefit plan sponsors polled plan to include SRI options for retirement funds by 2010. Paul Hilton of Calver Funds says, “Corporations are responding to the increasing desire of Americans to invest with their values.”

     Currently, health care and government agencies are those most likely to include an SRI option for employees’ retirement accounts, but some large companies have gotten in on the program as well. For example, chipmaker Intel began offering its employees an SRI retirement plan option eight years ago.

     There is now a guide to help potential investors to their green retirement. The Sustainable and Responsible Investment Strategies Publication by SRI World Group is the first one of its kind to be released.

     The guide is focused on institutional investors such as pension funds, universities, religious organizations, and foundations. It discusses how institutional investors representing approximately $7 trillion in assets can customize strategies to identify risk and capitalize on market opportunities. This can be done while simultaneously generating social and environmental benefits for their participants and beneficiaries. Strategies analyzed in the guide include corporate governance, proxy voting, shareowner resolutions, screening, and best-in-class investing.

     For a good, green retirement, ask a certified financial planner about all your options and look at guides such as the one by SRI World Group. It will help keep you comfortable in retirement and also do some good along the way for others.