Pensions, without opting out in a panic
Most default funds aren’t built with shariah in mind. Leaving can cost you your employer’s money. There’s usually a better first move.
What to do, in order
Find your fund
Log in to your pension and look at what you’re in, and at the other funds on the list.
Look for a shariah option
Many providers have one. Nest, the government-backed scheme, does. If you can’t see one, ask your provider or HR.
Check before you switch
See whether it moves your whole pot, whether it suits your age and what it charges.
The details
Opting out
Check your options first, because you could give up your employer’s contribution.
When there’s no shariah fund
Ask whether your employer can add one. Otherwise, take advice before you leave. A self-invested personal pension can open up more funds, but it may not attract the same employer contribution.
General information, not pension advice. Changing fund or leaving a scheme can affect what you end up with, so check with your provider or take regulated advice. MoneyHelper offers free, impartial pension guidance.