When you join a workplace pension your money will usually be automatically invested in a fund for you.
This is sometimes called the ‘default’ fund and will have been chosen by the pension scheme to meet the investment needs of most of the members.
If you’re happy with this fund, you don’t need to do anything more. Often this will be a ‘lifestyle’ or ‘target date’ fund. There’s more information on these types of fund below.
Most workplace pensions will also give you the option of choosing a different fund if you prefer. So it’s worth looking at these in case they’re better suited to you.
For example, there might be funds that offer higher growth but these might be riskier, meaning your pension pot could rise and fall in value more often.
Or there might be an ethical or socially responsible fund that appeals to you.
Some pensions also offer Sharia-compliant funds which invest in accordance with Islamic law, for example avoiding companies involved in gambling or alcohol. If one of these types of funds is of interest, check if your employer’s pension provider offers them. If not, ask your employer if they will make pension contributions to a different pension which does include these options.