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Members Your investment options

When you join now:pensions, your pension savings automatically go into our lump sum plan.

You don’t have to stay in the lump sum plan, you can choose a different investment option. We offer a range of investment plans and one investment fund to suit different needs and preferences.

The three phases of your pension journey See your investment options

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We offer six investment plans and one investment fund. All the plans follow a three-phase pension journey. They are designed with the aim of growing your pension savings over most of your working life. Then, 10 years before your planned retirement age, your savings start to move into investments designed to prepare your money for retirement, including reducing investment risk.

Unlike the six investment plans, the investment fund (‘shariah equity fund’) doesn’t follow a three-phase pension journey. Your pension savings stay invested in equities (shares in companies) up to your planned retirement age.

The three phases of your pension journey 

We take a whole-of-life approach to investing your pension savings.  All the investment plans we offer use a three-phase pension journey.

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1. Growth phase

During this phase we invest your pension savings with the aim of helping them to grow over most of your working life.

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2. De-risking phase

This phase starts 10 years before your planned retirement age. We gradually move your pension savings into investments that are designed to prepare them for retirement, including reducing investment risk.

3. Destination phase

This is when you start to take your money out of now:pensions.

This three-phase pension journey aims to get your pension savings to grow over most of your working life, then prepare them for retirement as you get closer to your planned retirement age. It’s automatic – you don’t need to do anything.

But the value of your pension savings can’t be guaranteed. And the pension journey only works in the way it’s designed to if we’ve got the right planned retirement age for you. This is your State Pension age unless you’ve changed it in now:u.

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Lump sum plan

The lump sum plan is designed for taking your pension savings as one or more cash ‘lump sums’. It 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.

Learn more about the lump sum plan

Drawdown plan

The drawdown plan is designed for taking your pension savings as flexible income in retirement – also known as ‘drawdown’ – rather than as a lump sum. It could be suitable if you want to grow your savings for most of your working life, then keep more of your savings in investments aiming to deliver growth in the years leading up to starting to take your savings.

Learn more about the drawdown plan

Annuity plan

The annuity plan is designed for taking your pension savings to buy a guaranteed income (generally for life) – also known as an ‘annuity’. It could be suitable if you want to grow your savings for most of your working life, then prepare to bring them more into line with the cost of buying an annuity in the years leading up to starting to take your savings.

Learn more about the annuity plan

Higher risk plan

The higher risk plan is designed to take more investment risk and seek higher growth than the other plans. It could be suitable if you want to aim to get higher growth but with a potential higher risk of falls in value.

Learn more about the higher risk plan

Lower growth plan

The lower growth plan is designed to take less investment risk and seek lower growth than the other plans. It could be suitable if you want to aim for less risk of your investments falling in value but accept the potential for lower growth.

Learn more about the lower growth plan

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’.

It 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.

Learn more about the shariah plan

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Shariah equity fund

Unlike the six 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.

This fund is designed for investing your pension savings in equities (shares in companies) in line with the requirements of shariah law and the principles of Islam. It could be suitable if you’re willing to take investment risk to get higher returns and accept the higher risk of falls in value.

Like the shariah plan, the shariah equity fund is monitored by a group of shariah law experts, who screen the investments to make sure they comply with shariah law.

This fund is higher risk than the now: shariah growth fund used in the shariah plan.

Learn more about the shariah equity fund

Your investment options

This video shows how our different investment options work, how your money is invested and how you can manage your pension savings in now:u.

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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 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).

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

Where can I get regulated advice?

Frequently asked questions

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You have a now:pensions account that you and your workplace put money into. Your money is invested in one of our investment options.

In the investment plans, the money is invested with the aim of helping it to grow then preparing it 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.

The way your now:pensions account is invested depends on the following things.

Which investment plan or fund you’re in.

Your planned retirement age. This is your State Pension age unless you’ve told us something different or changed it in now:u. It can affect how your savings are invested as you get closer to taking your money. Log in to now:u to check your planned retirement age.

The investment plans invest in different funds. The funds can invest in different assets such as equities (shares in companies), bonds (loans to companies or governments, with a promise to repay the loan plus interest at a later date), and other assets like cash and commodities (gold and industrial metals, for example). Learn more about our funds.

The value of your now:pensions account when you reach your planned retirement age will depend on a number of things.

How much you and your workplace pay in over the years.

How your investments perform.

The age you start to take your money out of now:pensions.

The costs and charges that come out of your account over the years.

Any costs for selling your investments when you start to take your money out of now:pensions.

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.

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 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.

See about our investment funds for more information.

It’s impossible to say. Investment values can’t be guaranteed. But you can check regularly how your investments are doing by logging in to now:u and going to Investment.

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.

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 Your investment options