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Actions taken without any sweetening or sugarcoating

Insurance broker Henning Schmidt von Schnitger in Oldenburg wrestles with an economist resistant to including cola in their investment portfolio.

Adopting a cautionary approach, Devoid of sweeteners.
Adopting a cautionary approach, Devoid of sweeteners.

Actions taken without any sweetening or sugarcoating

Lisa Bergmann, a 30-year-old PhD student at a northern German university, has made an unconventional choice for her retirement savings. Instead of opting for traditional investment options like Pepsi or Coca-Cola, she has chosen a fund-based pension insurance, focusing on sustainability.

The focus of her advice is not on complex financial calculations, but on achieving the most genuine sustainability possible. This broad term encompasses ecology, social aspects, and corporate governance, although it is often subjectively defined.

Lisa's decision comes amidst ongoing lawsuits in the US involving Pepsi and Coca-Cola due to their role in the obesity epidemic, potentially posing investment risks. Cristiano Ronaldo also caused a stir by removing Coca-Cola bottles from a press conference and replacing them with water, leading to a temporary loss of $4 billion in the company's stock value.

Lisa is familiar with index funds but prefers not to manage her retirement savings herself. Instead, she has set aside a monthly budget of 300 euros for her retirement savings, with active fund management necessary as the companies must be handpicked.

Two providers are in focus for the fund-based pension insurance: Condor Insurance from the cooperative sector and an unnamed provider. Condor Insurance offers a comprehensive fund selection, has relatively low costs, and waives opaque fees. One of its advantages is its cooperative structure, which typically results in lower costs and potentially better customer alignment.

The other provider, though unnamed, also offers a fund-based pension insurance. However, Condor's advantages, such as its focus on sustainability and cooperative structure, make it a more appealing choice for Lisa.

Lisa's professional situation may change after her PhD, and the current calculation of the pension gap does not apply to her due to these potential future changes. Despite higher administrative fees at the fund level, Lisa is not deterred from her investment choice.

Lisa shows interest in the MSCI World SRI, a smaller, sustainability-focused index. However, she is careful to ensure that her retirement savings plan does not involve self-management, preferring instead to let the professionals handle her investments.

In conclusion, Lisa Bergmann's choice of a fund-based pension insurance with a focus on sustainability reflects her commitment to a greener and more socially responsible future. Her decision underscores the growing trend of individuals prioritising sustainability in their investment choices.

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