Member investment FAQs

Where do my pension savings go?

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We invest retirement savings in funds which invest in companies and projects across the globe, aiming to earn more money than if the money was sitting in a bank account. Watch our Where do my pensions savings go? video to find out more.

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How is my money invested?

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We offer two approaches to investing your pension savings, we can manage your investments for you, or you can do it yourself.

Investments we manage for you 

We have investment strategies that you can use, with different targets to choose from. As you get closer to retirement, we will automatically move your investments into funds that are more aligned with how and when we believe you will retire. You should let us know when you plan to retire and keep this updated in your Smart Pension account, so that your investment strategy is appropriate for your planned retirement age.

Investments you can manage yourself 

You don’t have to use one of our investment strategies. You can choose your own investments from our fund range instead. In this case, you will need to choose the mixture of funds yourself and keep an eye on them, changing them if you consider it necessary to do so. You can find out more information in your Investment Guide, available in your account.

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How do I choose how my money is invested?

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You can choose where your money is invested through the Smart Pension member app or in your Smart Pension account. When you’ve signed in, you will find the Investment Guide, which will take you through all of the investment options that are available to you.

Remember, choosing your own investment options isn’t for everyone

If you don’t feel confident making a decision on your own, you can leave it to our team of investment experts. The majority of Smart Pension members’ pension savings are automatically invested in the Smart Sustainable Growth Fund. However, we do have specific investment arrangements with a number of employers where this will be different. 

To see how your pension savings are invested, we recommend you sign in to your Smart Pension account

Just click the Investments tile. Here you can also download your investment guide and change how your money is invested. Where does the money you pay into your pension go?

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What is ESG?

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ESG is an industry term that stands for Environmental, Social and Governance. In all our investment options and offered strategies, we consider ESG issues, and how the risks associated with them might affect the returns of investments. This means that, when choosing funds, we think about factors including environmental impacts, social impacts (issues which affect the fair treatment of people) and governance (company business practices), which shapes the companies invested in.

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How does Smart Pension approach sustainability?

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We invest our members' pension investments with the aim to do no harm but also make a positive difference to society and our planet. Read about our sustainability approach including our commitment to net zero, how we invest and our impact investing. Alternatively, you can watch our Director of Investment Proposition, James Lawrence, explain our approach to sustainable investing in our What is Smart Pension’s commitment to sustainability? video.

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What is Smart Pension’s net-zero target?

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In the Smart Sustainable Growth Fund, where the majority of our members are invested, we are targeting a net zero date of 2040. We want to reduce our emissions in a truly impactful way, to align our investments with a limit of 1.5°C rise in global temperature. To find out more about our plans, see our net zero paper.

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What is impact investing?

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Impact investing relates to investments that are intended to have a positive, measurable, environmental and/or social impact as well as a financial return. An example of this would be investing in businesses that benefit the local community such as renewable energy, agriculture and research. Impact investing not only delivers the required financial returns but also achieves meaningful, intentional and measurable benefits for people and the planet. Watch our What is impact investing? video to understand more.

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What are our ethical investment options?

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The majority of our funds take ESG considerations into account, aiming to reduce negative harm on people and our planet. Ethical investing is guided by personal beliefs and members may differ in what they consider to be right or wrong. We offer a Ethical and Climate fund, which can be self-selected, that has stricter exclusions on its investments. We also offer a Sharia Fund where exclusions are applied to meet Islamic principles.

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How does Smart Pension help protect nature?

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We recognise that we cannot deliver on our net zero commitment and avoid harm to people and our planet without considering how we protect nature in our investments. Biodiversity supports everything in nature that we need to survive such as food, clean water, medicine and good health. That’s why we the Smart Sustainable Growth Fund into a biodiversity fund and are taking action to remove deforestation from our investments. Watch our Investing to improve biodiversity video and read our Road to deforestation-free investments paper to find out more.