Why Your Pension Fund Matters
Most UK employees are auto-enrolled into a workplace pension. The money goes in every month — but few people check where it's actually invested.
Default pension funds typically invest in a mix of equities, bonds, and other assets. This often includes companies involved in alcohol, tobacco, weapons, gambling, and conventional interest-based finance — all of which are impermissible under Islamic principles.
Switching to a Sharia fund doesn't change your contribution amount, your employer's contribution, or your tax relief. It only changes how your money is invested — into companies screened for Islamic compliance.
Workplace Pension Providers — Sharia Fund Availability
Here's whether the major UK workplace pension providers offer a Sharia-compliant fund option:
| Provider | Sharia Fund? | Fund Name | More Info |
|---|---|---|---|
| Nest | ✓ Yes | Nest Sharia Fund | View ↗ |
| Aviva | ✓ Yes | Aviva Islamic Global Equity Fund | View ↗ |
| Legal & General | ✓ Yes | L&G Islamic Global Equity Index Fund | View ↗ |
| Standard Life | ✓ Yes | Standard Life Islamic Global Equity Fund | View ↗ |
| Royal London | ✓ Yes | Royal London Global Islamic Equity Fund | View ↗ |
| The People's Pension | ✓ Yes | Shariah Growth Fund | View ↗ |
| Scottish Widows | ⚠ Partial | Available in some schemes only | Check ↗ |
| Fidelity | ✗ No | No dedicated Sharia fund | Check ↗ |
| Mercer | ⚠ Partial | Available in some employer schemes | Check ↗ |
Availability may vary by employer scheme. Always confirm directly with your pension provider or HR department.
Search by Employer
Find your employer below to see their pension provider and whether a Sharia fund is available. This list covers FTSE 250 companies and other major UK employers.
| Company | Pension Provider | Sharia Fund? | Status |
|---|
Can't find your employer? Check your payslip or HR portal for your pension provider name, then refer to the table above.
What If My Provider Has No Sharia Option?
If your workplace pension provider doesn't offer a Sharia-compliant fund, you have two options:
- Request one from HR — many providers will add a Sharia fund if there's employee demand. Use the template below.
- Open a SIPP — contribute the minimum to your workplace pension (to keep employer matching), then redirect additional contributions to a halal SIPP. See section 5 below.
Template Email to HR
Copy and personalise this email to send to your HR or benefits team:
Subject: Request for Sharia-Compliant Pension Fund Option
Dear [HR Team / Benefits Manager],
I am writing to request that a Sharia-compliant (Islamic) investment fund be made available within our workplace pension scheme with [PENSION PROVIDER NAME].
As a Muslim employee, I am unable to invest in the default fund as it includes companies involved in interest-based finance, alcohol, tobacco, and other activities that conflict with my religious beliefs. A growing number of UK pension providers now offer Sharia-compliant fund options, including Nest, Aviva, Legal & General, Standard Life, and Royal London.
I would be grateful if you could:
- Check with [PENSION PROVIDER NAME] whether a Sharia-compliant fund can be added to our scheme
- If not currently available, raise this as a request with our pension provider on behalf of employees who require this option
I understand that other Muslim colleagues may also benefit from this option. I'm happy to discuss further if helpful.
Thank you for your time and consideration.
Kind regards,
[YOUR NAME]
[YOUR DEPARTMENT]
Self-Invested Pension (SIPP) Alternatives
If your employer's pension scheme cannot accommodate a Sharia fund, a SIPP gives you full control over where your pension is invested.
Dedicated Islamic investment platform. All portfolios are Sharia-screened. Offers a managed SIPP with diversified halal equity and sukuk portfolios.
- Management fee: 0.49%
- Fully managed — no stock picking needed
- FCA regulated
Simple pension consolidation platform with a dedicated Shariah Plan that invests in the HSBC Islamic Global Equity Index Fund.
- Management fee: 0.50%
- Easy pension transfers from old providers
- App-based management
Low-cost DIY platform where you choose your own investments. Access to iShares MSCI World Islamic ETF (ISWD) and other halal funds.
- Platform fee: 0.25% (capped at £42/yr for ETFs)
- Wide fund range including Islamic ETFs
- Requires self-management
Full SIPP Provider Comparison
For those who want to self-manage their halal pension investments, here's a detailed fee comparison:
| Provider | Annual Fee | Halal Funds | Notes |
|---|---|---|---|
| Hargreaves Lansdown | 0.45% (capped £45/yr for ETFs) | ISWD, ISEM, SKWD + more | Largest UK platform. Excellent fund range. |
| AJ Bell | 0.25% (capped £42/yr for ETFs) | ISWD, ISEM + more | Good value for larger portfolios. |
| Vanguard | 0.15% (capped £375/yr) | Limited Islamic options | Very low cost but limited halal fund choice. |
| Interactive Investor | £12.99/month flat fee | ISWD, ISEM, SKWD + more | Best value for portfolios over £50,000. |
| Wahed Invest | 0.49% | Fully halal portfolio | Dedicated Islamic platform. SIPP available. |