Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

The importance of good pension investments

Like most people, it is likely that you’ll be relying on your pension for an income in later life. And yet many people aren’t aware of where their pension is invested, or even that their pension is an investment at all. In this article we look at the importance of reviewing your pension investments, and the big impact that bad pension investments can have on your retirement.

Your money should work hard for you

You have probably worked hard for your money, so it’s natural to want it to work hard for you in return. This means keeping it in high-quality investments that have the potential to grow for you over time. After all, the better your investments perform the more money you will have to enjoy in retirement.

More than half of Brits don’t know where their pension is invested*

While some people regularly review their pension investments, others will admit that they don’t have a clue where their pension is invested! According to our latest research, more than half (55%) of Brits don’t know where their pension is invested*.

This means there could potentially be a lot of savings stagnating, or even shrinking in poorly performing investments. And there are plenty of bad investments available – especially with older pensions.

The difference good investments can make

The quality of your pension investments can make a huge difference to the amount of money you have in retirement. To see just how big of a difference your choice can make, let’s consider two investors. Both have built up a £100,000 pension and left it invested for 20 years.

  • The first chose bad investments that gave a 1% annual return and grew to £122,019
  • The second chose better investments that produced an average 5% annual return, giving them a total of £265,330 after 20 years**
  • This meant that the second investor had saved more than £140,000 extra for their retirement


We can take a look under the bonnet of your pension

Our pension heroes can carry out an in-depth review of your pension investments, giving you more information about how your investments are performing, how much you are paying in fees and the level of investment risk you are taking.

There will be a charge for this service, but sorting out your pension investments can make a huge difference to the amount of money you have in retirement – so the advice could more than pay for itself. If you’d like to find out more, please book a telephone pension consultation with our pension heroes.

Book a pension consultation


Leave your pension investing to the experts

Of course you may not want to spend the years from now until retirement reviewing, researching and rebalancing your investment portfolio. So why not let us do it for you?

Just invest in a Ready-made Portfolio. Each portfolio contains a diversified mix of funds from across the globe, built in line with our latest investment research and designed to give you the highest potential returns for your given level of risk.

We’ll waive your account fees if you invest in a Ready-made Portfolio with our Best SIPP

And even better, if you invest in a Ready-made Portfolio with our award-winning Best SIPP we will waive your annual account fee (normally 0.3% a year)***. This means you’ll have more money to save for retirement.

Find out more


Speak to a pension expert today

If you think your pension investments could be working harder for you, why not book a telephone pension consultation with one of our pension heroes? All you need to do is fill out this short form, call us on 020 7189 9999 or email One of our experts will be in touch to arrange your consultation at a date and time to suit you.

Important information

*Research based on a survey of 1,293 full and part-time workers.

**These figures are based on investment returns of 1% and 5% per annum, exclusive of any fees (which may vary from provider to provider), compounded annually. The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested.

***We have removed our service fees of 0.3% (or less) a year, but like all funds our Ready-made Portfolios have ongoing charges for everyday costs such as researching and managing the investments. There could also be fees to pay if you close your Best SIPP or transfer to another provider. 

SIPPs are not suitable for everyone. They may not be right for you if you don’t want to invest across different asset classes or don’t think you will make use of the investment choices available to you. Please contact us for guidance or advice if you are unsure.

This article does not constitute personal advice.  If you are in doubt as to the suitability of an investment please contact one of our advisers.