Is it time for fortunate and clean-energy-leaning retirees to put their money where their mouth is?

There are many Americans who are retired or approaching retirement who have been fortunate enough to have accrued healthy retirement savings. Unfortunately, there are many more Americans who have only very meager retirement savings or none at all, but that is another story; these are not the people being discussed in this post.

I’m talking about the group of people who understand that the world needs to radically reduce carbon emissions as quickly as possible in order to keep climate change consequences from being worse. I’m talking about people who have retirement funds in investment instruments beyond their Social Security or pension. In other words, I’m talking about the “money-where-the-mouth-is” group. I’ve gotten curious about what’s out there financial-instrument-wise for such a person, mythological or otherwise.

Yes, god help me, I’ve decided to look into this.

The “Date of Death” Metric

I’m at that stage of life where retirement fund amounts and performance stand in as the “date of death” metric, where one adds up all assets and subtracts liabilities to determine how many years a person can live at their previously fixed level of annual spending. For example, if a person has $500,000 in retirement funds and $21,000 is Social Security, and has an annual budget of $42,000, then one would have 23.8 years to afford to live, as follows:

• $42,000 (overall annual spending budget) minus $21,000 (annual income through Social Security) equals $21,000, which is the annual addition annual income needed beyond Social Security to meet the living budget.
• $500,000 (retirement assets) divided by $21,000 (annual income needed beyond Social Security to meet the spending budget) equals 23.8.
• Add 23.8 to your current age (example, 70) and 93.8 years of age is when you’ll no longer be able to afford to live, hence “date of death.”

I’m not a financial planner, but I know how to make a budget that subtracts expenses from income (e.g., Social Security), which then tells me how much supplemental money I require from my retirement assets. I’m not a financial planner, and I know that some people have more complicated sources of income than just Social Security (e.g., pensions and annuities); I also know that most common retirement funds are based in markets that have returns that rise and drop, whether equity stocks or mutual funds or other investment arrangements (I’m leaving the issue of bonds out of this because, well, I’m not a financial planner). If, in the above example, the $500,000 in retirement mutual funds drops by half–because, say, of an alien invasion or AI bubble collapse—then the “date of death” for the proverbial 70-year-old would be 81.9 years of age. Eighty-two years of age doesn’t feel all that old to me or my peers. I’m reminded of the “Bring out your Dead” scene in Monty Python and the Holy Grail: “I’m not dead yet.”

Of course, if markets drop precipitously and significantly, there are larger problems afoot, so the example above is less a real-world scare tactic than an effort to keep the example’s math easy. I’m not a financial planner, but even I know that the simple math above doesn’t take into account various complicating factors such as taxes. The example above also assumes little rise in the cost of living (ha!) or whether the market will see neutral growth, negative growth, or positive investment growth. Obviously, market performance or alternative financial instruments for retirement funds that better buffer the retiree from market volatility, and a whole bunch more considerations exist, which is why one pays for a financial planner’s service and doesn’t consult me. Nevertheless, none of this is exactly rocket science, and the general argument outlined in this post holds.

How Many Well-off Retirees Are There?

Who are well-off retirees? I am talking about the modest chunk of American retirees who have $500,000 or $250,000 or $1,000,000. Here’s what Google’s AI Overview reports:

Approximately 7% to 9% of Americans have saved $500,000 or more for retirement. While this figure is higher among older age groups, it remains relatively rare, as 58.4% of Americans have less than $10,000 saved, and the median retirement savings for those aged 55–64 is only $185,000. 

Retirement Savings Breakdown

• • $500,000+ Range:About 4% of Americans have $500,000–$999,999, while roughly 3% to 4.6% have $1 million or more.
  • Households with Savings:Among U.S. households with any retirement account assets, roughly 9% have hit the $500,000 mark.
  • Median vs. Average:While average balances might look higher, the median (middle) value is much lower, indicating many people have far less
  • Age Factor:According to this Federal Reserve data analysis from NerdWallet, median savings for ages 65–74 is $200,000, while the average savings is over $600,000, highlighting that a large portion of the wealth is held by a minority of savers. 

While $500,000 is a significant milestone, it falls below the estimated $1.28 million to $1.46 million many Americans believe they need for a comfortable retirement. 

More specifically, I’m talking about the subset of retirees with such resources who might consider doing something with those retirement funds to support, speed up, and otherwise make it more likely that the transition to clean energy happens sooner and better. If I use the more modest 7% of Americans with median retirement savings of $500,000 or more, the number is 23.9 million people. Is there a percentage of this percentage who are interested in shifting their savings into investment instruments that support the clean energy transition? I’m not talking donations, but putting their retirement savings to work in financial instruments (e.g., IRA mutual funds) doing the important work of combatting climate change and building a smarter world of energy.

What kind of money are we talking about? Google AI does what it is good at (although not infallible), which is finding and aggregating information it’s prompted to collect. Here’s the Google Search AI Summary for the query “What is the size of investment instruments of Americans in 2025?”

As of late 2025, U.S. retirement assets totaled $49.1 trillion, with $19.2 trillion in IRAs and $14.2 trillion in defined contribution plans (like 401(k)s). Households favored stocks (25%), mutual funds (13%), crypto (10%), and bonds (8%), with 64% of Americans likely to invest and 56.4% owning mutual funds/ETFs.

Size and Composition of Investment Instruments (2025)

• • Retirement Assets: Totaled $49.1 trillion in Q4 2025.
  • Individual Retirement Accounts (IRAs): $19.2 trillion.
  • Defined Contribution Plans (401k/403b/457/TSP): $14.2 trillion.
  • Mutual Funds: Represent $14.7 trillion in IRAs and DC plans (44% of total).
  • Average Portfolio Composition: Stocks (25%), Mutual Funds (13%), Cryptocurrencies (10%), Bonds (8%), and alternatives like private equity/hedge funds.]

Key Findings on 2025 Investment Landscape

• • Robust Growth: Assets under management for advisors grew to $144.6 trillion in 2024, with continued strong market conditions leading into 2025.
  • Capital Gains: Average net capital gains for applicable tax returns varied by state, with investors seeking high returns in 2025.
  • Commercial Real Estate: 70% of investors planned to buy more assets in 2025, with multifamily and industrial being preferred sectors.

How Much Retirement Money Could Be Invested in Clean Tech?

Here’s the thought experiment (a phrase I love, because it is a pretentious way of saying “thinking”): Let’s say that of these 23.9 million Americans half have no interest in shifting their retirement funds to fossil-fuels-free or clean-tech-focused funds, keeping in mind the highly polarized society we’re living in. That leaves 12 million people. If each of the 12 million people transfer $1000 into non-fossil fuels/clean energy funds, that is $12 billion. Now let’s say these 12 million people shift half of their retirement portfolio ($500,000 medium amount divided by 2=$250,000), that’s $2.75 trillion shifted over to non-fossil-fuels-free clean tech portfolios.

And then there’s the answer, according to Google replying to “How much money got invested in clean tech in 2025?” which resulted in a total of $2.3 trillion:

Global investment in clean energy technology reached a record high of $2.3 trillion in 2025, marking an 8% increase over the previous year despite policy and trade challenges. Key investments included $893 billion in electrified transport, $690 billion in renewable energy, and $483 billion in power grids, according to BloombergNEF.

Key 2025 Investment Highlights:

• • Top Markets: China remained the largest market with $800 billion invested (despite a 4% dip), followed by the U.S. at $738 billion (up 3.5%), and the EU with $455 billion.
  • Growth Leaders: India experienced rapid growth, with a 46% increase to $101 billion.
  • Sector Breakdown: Electrified transport led total investment, while investment in stationary battery storage grew significantly to $66 billion.
  • Manufacturing Slowdown: Global manufacturing investment in clean tech dropped as a result of domestic overcapacity, particularly in China.

While BloombergNEF reported $2.3 trillion, the Clean Investment Monitor indicated a figure of $1.96 trillion, covering manufacturing and deployment, highlighting a shift toward more moderate growth compared to prior years.

So, if half the retirees with good retirement funds put those funds into clean energy financial investment instruments, there could be a doubling or more of money focused on clean energy. In theory, this cohort could retire themselves into a doubling of market efforts to make clean energy happen. Of course, some number of the 11 million retirement investing Americans may already be involved in non-fossil fuel/clean tech investments. Again, let’s stress that we’re not talking donations, but shifting the retirement savings already in investment instruments to non-fossil fuel/clean tech investment instruments doing the important work of combatting climate change and building a smarter world of energy.

Has the clean tech and climate change world been talking enough about what many of us can be doing to hurry along the better world? Well, I’m not a financial advisor, but I’ll say “No.”

Fossil Free Funds and Clean Tech Funds

How does one go about discovering in a confident manner, what investment funds are likely more effective for encouraging the dual outcomes of investing in clean energy and keeping one’s “date of death” from dwindling close?

Well, you can always ask Google to “Identify the best performing non-fossil fuel mutual funds. Identify the best performing clean tech mutual funds. Base this on returns over the last five years. Include the evaluation of how strict the fossil fuel exclusion is, including with funds that may include financial institutions that fund fossil fuel.” Here’s the answer I got recently (by the way, you’re likely to get different results depending on when you ask, or, possibly, the mood of Google; remember, I am not a financial advisor, nor is Google):

The following funds are identified as the best performers over the last five years (as of May 2026), categorized by strategy.

TOP PERFORMING BROAD MARKET NON-FOSSIL FUEL FUNDS [1]

These funds invest in the broader market (tech, healthcare, finance) while excluding fossil fuel producers. They have generally outperformed pure “clean energy” sector funds over the last five years due to the strength of the broader market. [1, 2, 3, 4]

1. 1. Vanguard FTSE Social Index Fund (VFTAX) [1]

• • 5-Year Annualized Return: ~13.2% (Cumulative ~86%)
  • Performance: This is likely the highest-performing “sustainable” fund accessible to most investors, driven by heavy weightings in large-cap tech stocks like NVIDIA, Apple, and Microsoft.
  • Strictness & Financial Exposure: Low Strictness on Finance. While this fund strictly excludes companies with fossil fuel reserves (like Exxon or Chevron), it does not exclude financial institutions that fund the fossil fuel industry.
    • Evidence: As of 2026, it holds significant stakes in JPMorgan Chase (1.65%) and Bank of America (0.68%), both of which are top funders of fossil fuel expansion. [1, 2, 3, 4, 5]

1. 2. Green Century Equity Fund (GCEQX)

• • 5-Year Annualized Return: +11.07%
  • Performance: This fund has delivered strong double-digit returns, significantly outperforming its “Balanced” counterpart. It tracks a customized index of sustainable companies.
  • Strictness & Financial Exposure: Highest Strictness. This fund is marketed as a “truly fossil-fuel-free” option. It excludes exploration, extraction, processing, and utilities that burn coal.
    • Differentiation: Unlike Vanguard, Green Century uses shareholder advocacy to pressure companies (including banks) to stop funding climate change. It is the primary option for investors seeking to minimize all association with the industry. [1, 2, 3, 4, 5]

1. 3. Parnassus Core Equity Fund (PRBLX)

• • 5-Year Annualized Return: +9.66%
  • Performance: A long-time leader in ESG investing, though it has slightly lagged the S&P 500 and Vanguard’s passive index over the last 5 years.
  • Strictness & Financial Exposure: Parnassus excludes companies generating >10% of revenue from fossil fuel extraction. However, it may invest in companies that use fossil fuel energy and does not have a blanket exclusion on diversified banks. [1, 2, 3, 4]

TOP PERFORMING CLEAN TECH/CLEAN ENERGY MUTUAL FUNDS

These funds focus specifically on the energy transition (wind, solar, batteries, efficiency). The sector has faced significant volatility recently, making the top performer an outlier. [1, 2, 3, 4]

1. 1. Fidelity Environment and Alternative Energy Fund (FSLEX)

• • 5-Year Annualized Return: +11.65%
  • Performance: This is the best-performing clean energy fund It has significantly outperformed popular ETFs like ICLN.
  • Why it Won: It is actively managed and takes a broader view of “environmental solutions.”
  • Strictness: While focused on clean energy, it is not a “purist” fund. It has recently held companies like Siemens Energy and GE Vernova (gas turbine manufacturers) because they are critical to grid efficiency and the energy transition, even though they service natural gas infrastructure. [1, 2, 3, 4, 5]

1. 2. Calvert Global Energy Solutions Fund (CAEIX)

• • 5-Year Annualized Return: +4.05%
  • Performance: Positive but modest returns. It holds a “Gold” medalist rating from Morningstar for its process but has lagged behind the broader market. [1, 2, 3]

1. 3. Popular ETFs (Underperformers)

Note: These passive funds suffered from the post-2021 deflation in clean tech valuations, whereas the actively managed Fidelity fund avoided the worst of the drawdown. [1, 2]

• • iShares Global Clean Energy ETF (ICLN): +1.92%
  • First Trust Nasdaq Clean Edge Green Energy (QCLN): -1.57% annualized (Negative return).

• • For the highest raw return, Vanguard (VFTAX) is the winner, but you will own shares in the world’s largest fossil fuel financiers.
  • For the best performing strict option, Green Century Equity (GCEQX) offers the strongest combination of a ~11% return and a “fossil free” mandate that actively addresses the banking sector’s role in climate change.
  • For clean technology exposure, Fidelity (FSLEX) is the only fund in this category that has delivered double-digit annualized returns over this period. [1]

Or, of course, you can always do the work yourself or use a financial planner (which I am not). Useful green investment funds information resources include Fossil Free Funds for analyzing carbon exposure, Morningstar for sustainable fund ratings, and Green America for curated lists of environmental mutual funds and ETFs. These platforms help identify options that avoid fossil fuels and focus on clean energy, sustainability, and ESG criteria.

Key Information Resources for Green Investing

• Fossil Free Funds: A premier tool for searching mutual funds and ETFs to analyze fossil fuel exposure and check the carbon footprint of portfolios.
• Morningstar: Provides comprehensive analysis, performance rankings, and lists of the best sustainable funds and ETFs to buy.
• Green America: Offers a guide to green mutual funds and ETFs that specifically avoid fossil fuels and focus on environmental solutions.
• Green Century Funds: Provides resources on fossil fuel-free investing, shareholder advocacy, and sustainable investment strategies.
• S. News & World Report: Regularly publishes lists of top-performing socially responsible funds and green stocks.

Top-Rated Green Funds and ETFs (As of 2025-2026)

• Fossil-Free Focused: Etho Capital Climate Leadership U.S. ETF, Green Century Funds.
• Clean Energy & Environmental: iShares Global Clean Energy ETF (ICLN), Invesco Solar ETF (TAN), Impax Global Environmental Markets Fund.
• Sustainable Broad Market: Vanguard ESG U.S. Stock ETF, Sphere 500 Climate Fund, Fidelity U.S. Sustainability Index Fund.

Key Considerations

• Shareholder Advocacy: Some funds (e.g., Green Century) actively urge companies to improve environmental policies.
• Expense Ratios: Look for competitive fees; the Fidelity U.S. Sustainability Index Fund (FITLX) has a low expense ratio of 0.11%.
• Performance: Sustainable funds can outperform traditional funds, with some specialized funds providing high returns in 2025 and 2026.

I See Your Confusion and I Raise Your Awareness

So, you want to help push the transition to clean energy forward. You want to do your part to reduce the consequences of climate change. One way is to put your retirement savings to work within financial instruments like mutual fund IRAs. Personally, having to pay attention to this sort of thing makes me want to pull my own head off, but then I’m not a financial planner, remember?

On the other hand, I do want to encourage clean energy in order to help reduce the present and future challenges of climate change, so I’m making the effort. I’m also one of those 11 million Americans with a chunk of savings for retirement, and while my accounts are modest compared to many, it’s unseemly to think that I’m less fortunate than them, with the far better way to think is that I’m more fortunate than a big majority of Americans to have such resources. An even better way to think of these retirement resources is that I can put my money where my mouth is, and that means putting what retirement resources I have into the market in such a way as to encourage the direction I want to see the world take.

This seems like a good bet to me.