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Members Shariah plan

The shariah plan is designed for investing your pension savings in line with the requirements of shariah law and the principles of Islam, and for taking your pension savings as one or more cash ‘lump sums’.

See how the plan works

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The shariah plan could be suitable if you want to grow your savings for most of your working life but want more stability in the years leading up to starting to take your savings.

Islamic finance emphasises social responsibility, ethical investment and profit-sharing. Shariah law prohibits investment in areas such as alcohol, tobacco, weapons, gambling and adult entertainment. It also avoids types of investment that involve speculation, such as derivatives. The shariah plan is monitored by a group of shariah law experts, who screen the investments to make sure they comply with shariah law.

The shariah plan follows a three-phase pension journey

The shariah plan, like all our investment plans, follows a three-phase pension journey. They aim to grow your pension savings over most of your working life. Ten years before your planned retirement age, your savings start to move into investments designed to prepare your money for retirement, including reducing investment risk.

1. Growth phase

The shariah plan aims to offer growth in the now: shariah growth fund  over most of your working life.

2. De-risking phase

Ten years before your planned retirement age, your pension savings start to move into the now: shariah destination fund.  A part moves every three months until your planned retirement age.

3. Destination phase

At your planned retirement age, 100% of your pension savings is invested in the now: shariah destination fund.

Important note

If you join now:pensions within 10 years of your planned retirement age you’ll start your journey in the de-risking phase. Your planned retirement age is your State Pension age unless you’ve told us something different or changed it in now:u.

Change your retirement age

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Our pension journey

Our three-phase pension journey gradually moves your pension savings from the now: shariah growth fund to the now: shariah destination fund.   

Growth phase

now: shariah
growth fund
100%

De-risking phase

now: shariah
destination fund
0% to 100%

now: shariah
growth fund
100% to 0%

10 years before planned retirement age

Destination phase

Choose how you’d like to take your savings.

now: shariah destination fund
100%

10 years before planned retirement age

There’s even more information, including the risk rating for each investment fund in the plan, on our about our investment funds page.

Shariah plan explained

This video helps you understand how the shariah plan works, how your money is invested and how you can manage your pension savings in now:u.

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Investment funds and performance

The value of investments can go down as well as up. How an investment fund has performed in the past doesn’t guarantee its future performance will be the same. For the latest information on how our investment funds are performing, visit our about our investment funds page.

About our investment funds

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The obligation to pay Zakat on any returns or capital gains derived from investments in the shariah plan is the sole responsibility of the individual investor. now:pensions does not calculate, collect, or pay Zakat on behalf of investors, nor does it give any advice or guidance about Zakat obligations. Investors are advised to consult with a qualified religious scholar or a regulated financial adviser to determine their specific Zakat responsibilities based on their individual circumstances.

Choosing an investment option that's right for you

Which investment option is right for you depends on a number of things including:

when you want to retire
how much investment risk you’re willing to take
your personal beliefs
the amount of savings you have built up
how you plan to take your pension savings
what other savings, investments and income you have, and how your pension savings fit in with these.

If you’re not sure of a plan or fund is right for you, it’s a good idea to talk to a financial adviser who’s regulated by the Financial Conduct Authority.

The government-backed MoneyHelper website has a list of regulated financial advisers.

Where can I get regulated advice?

Manage your pension in now:u

To see how your investments are doing or change your investment choice

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Frequently asked questions

See all support for members

We use ‘plan’ in the names of some of our investment options, such as the lump sum plan. These plans aim to help your pension savings grow over most of your working life, then aim to better protect their value as you get closer to taking your money out of now:pensions.

We invest your pension savings to help them grow over the long term. We invest them responsibly and sustainably to help reduce financial risks from things like climate change, which could have a negative impact on the economy and investments in the long term.

If you’re in one of our investment plans, we prepare your pension savings for retirement, including reducing investment risk.

We also offer a shariah equity fund. Unlike the investment plans, the shariah equity fund doesn’t move into investments designed to prepare your money for retirement, including reducing investment risk, as you near your planned retirement age.

Learn more here.

When you join now:pensions, your savings are invested in our lump sum plan. You stay in the lump sum plan if you don’t choose anything else. So if you’re sure you’ve never chosen another investment option, you’ll be in the lump sum plan.

To check which plan you’re in, log in to now:u and go to Investment. You’ll see the plan you’re currently invested in.

The value of your investments can go down as well as up. Past performance doesn’t mean future performance will be the same.

now:pensions can’t give you investment advice. If you’re not sure if a plan or fund is right for you, it’s a good idea to talk to a financial adviser who’s regulated by the Financial Conduct Authority (FCA). Learn more here.

Your investment plan shows the plan your pension savings are currently invested in.

Below this you can see:

Investment change – how the value of your pension savings has changed through investment since you joined now:pensions
Current value of your pension savings – this is updated regularly and the value will go up and down in line with the value of the plan you’re invested in
Money in and out – how much money has been paid in, and any money that’s been paid out, of your pension savings.

Choose See details to look at:

the charges you pay us to manage your pension savings
your current planned retirement age
a breakdown of the investments in your plan.

The content on this website has been produced for information purposes only (and may be subject to change without notice) to provide you with fund information. It does not consider your personal circumstances and is not intended to provide you with investment, pensions or legal advice. Before you make any investment decisions, we recommend you consult an appropriately qualified independent financial adviser. NOW: Pensions Ltd and NOW: Pension Trustee Ltd don’t accept liability for any reliance on the information placed on the contents of this page.

Members Shariah plan