Where can I invest my pension?

Most stakeholder pensions offer a limited number of investment funds to choose from. While providers typically offer a range of around 20 funds, they are normally only funds run by that particular pension provider. For example the Norwich Union stakeholder pension allows you to invest in Norwich Union managed funds. You should therefore consider your provider carefully when choosing a stakeholder pension.

If you do not want to be restricted to the funds of a single provider you may wish to consider a low cost SIPP (self invested personal pension), which offers far greater investment choice.

More details of the funds available from each provider can be found on our stakeholder pensions application page.

The illustration below highlights the importance of choosing a pension that allows you to access funds with good performance. Every percentage point growth can have a significant impact on the value of your pension.

These figures exclude charges but this also serves
to demonstrate the importance of low costs.

After 15 years growth at 7% per annum the fund value is over £34,000 higher than if it had grown at 5% per annum. On larger pensions funds, over longer periods of time the difference could easily be several times higher.