How your workplace pension is invested
The way your pension is invested can have an impact on your retirement savings, so it’s important that you understand how it works and what you can do to stay informed about how your pension is tracking against your retirement income goals.
How your pension works
Step 1: Auto enrolment
You join your pension scheme automatically and your money is invested in a default investment strategy. Once you have joined, you can review your contribution levels, investment options and target retirement age, to ensure they meet your retirement goals.
Learn more about auto enrolment
Step 2: Making contributions
Your employer will usually make regular payments into your pot on your behalf. And, you may also make regular contributions from your salary. These will be deducted from your pay before you receive your pay each month, and paid across to Fidelity on your behalf.
Learn more about contributions
Step 3: Deciding which funds your money goes into
When we receive your pension contributions, we invest them in funds, which hold money from tens of thousands of pension scheme members like you. These funds invest your money in assets such as company shares, government bonds and cash deposits. There are two ways of deciding which funds your money goes into:
The ‘default’ investment strategy
Investing in the default means that during the early years of your working life, we invest your money in a way that has the potential for long-term growth. The funds are carefully selected by experts and monitored to help you to build up the savings you need for a happy retirement.
Learn more about this strategyThe ‘self-select’ strategy
You can choose the funds yourself, from the range available through your pension plan. This is often called ‘self-select’ and it allows you to tailor an investment strategy to your particular long-term goals.
Learn the basics of investingYou can find out more about the fund or funds you're invested in by logging into your online account, PlanViewer. Each fund has its own 'factsheet' that will provide you with a range of information - including fund objectives, risks, costs and past performance.
Step 4: Know where your pension savings are invested!
Curious about where your money goes when it leaves your payslip? We’ve partnered with fintech company Tumelo to bring you Fidelity Illuminate - an opinion tool which enables you to see the companies your pension savings are invested in, and give you a voice on the environmental, social and governance (ESG) issues that matter to you.
Step 5: Working towards retirement
It’s important to consider what kind of lifestyle are you hoping for when you retire. And just as importantly, how you can make it happen. While we’ve all got different ideas about what we may want from retirement, the earlier you can start planning, the better.
Whether you self-select your own funds, or stay with your plan’s default investment strategy, it’s a good idea to review your pension savings regularly, to make they’re on track for your retirement goals.
Start to planning for your future, today.
Check the value of your current pension pot
The quickest way to do this is log in to your online account.
See whether you’re on track
Our short retirement quiz will help you picture the retirement lifestyle you want and check you’re on course.
Maximise your pension savings
These three simple tips could help you reach your future goals.
Next steps
Learn more about investing
Find out about the different types of investments and how you can use them in your pension plan.
Your retirement age
Learn how your retirement age can impact your pension, and how to review it in PlanViewer.
Sustainable investing
See how Fidelity are highlighting environmental, social and governance (ESG) issues.