What happens to your money?

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Every time you make a contribution, we deal with it in the following way:

  • Your money goes into your plan and we invest it. Depending on how your pension scheme is set up, your employer may have chosen a range of investment funds that we can invest in for you. You can review your funds and make your own investment choices at any time. We work out the unit prices to use when applying money to your plan. To do this we take into account the annual management charge (AMC) of your employer’s scheme.
  • The idea is that your money will then continue to build and grow until you’re ready to retire. Remember, the value of an investment can fall as well as rise for a number of reasons, for example market and currency movements. You may get back less than originally invested.

How to choose your investments

When you select the funds you want to invest in, you’ll have lots of different funds to choose from. Here are some key questions that you need to answer to help narrow your search:

1. How much do you want your investments to grow by?
2. How long do you have to achieve your retirement goals?
3. How much risk are you prepared to take?

By answering these questions, you’ll have a smaller number of funds to choose from to help you reach your retirement goals.

All investments carry a degree of risk. Risk, in financial terms, means the chance you’ll get less money back than you expected or even than you invested.

The key is managing your money effectively and investing in a way that can help you achieve your financial goals. To help you choose your investments, we’ve categorised our funds. You can find out how we’ve split our funds up and categorised them here

Need help investing?

To help you choose an investment strategy that’s right for you, why not try our investment planning tool: My Retirement Planner. It will help you work out your attitude to risk and choose the funds that suit you. You should get professional financial advice if you’d like more help choosing a fund.

Viewing a fund’s performance

To help you keep up to date with how your fund is doing, we regularly produce performance factsheets, which you can see on the fund performance(Opens new window) section of our website. You can type in the name of the fund you’re looking for or scroll through the list until you find it. Click on the fund name to download a factsheet.

Please remember that the value of any investments may go down as well as up for a number of reasons, for example market and currency movements. You may get back less than you originally invested.

Investment governance

The recent economic uncertainty has made choosing the right fund more important than ever. Our commitment to investment governance means we constantly monitor our funds to keep track of whether they're performing in line with their investment and performance objectives. If they don’t, we’ll remove them. Find out more about our investment governance