Many defined contribution schemes offer you a choice of how your contributions, and the contributions your employer makes on your behalf, are invested.
The choice might consist of a limited range of funds or could allow investment in a wide range of different types of funds. Many schemes will choose a fund to invest your money in if you don’t make a choice.
You can decide to move money that you’ve built up from one fund to another (switch funds). Or you can choose to have future contributions invested in a different fund.
Over time, the value of your pot will change. Its value at any time will depend on:
- how much has been paid into it
- the length of time that each contribution has been invested
- investment growth over this period
- the charges deducted from the scheme.
You should be sent regular statements showing the value of your pot. But you can ask the scheme administrator for a value at any time.
Some schemes have an online system you can access that will provide details of your pot and a valuation.