Choosing a pension fund is a personal decision.
At Penny, we keep things simple by offering a carefully chosen range of funds to match different levels of risk and growth. The right choice depends on your attitude to risk and how close you are to retirement. For those who want their money to make a positive impact, we also offer an ethical option for conscious investing.
What funds does Penny offer?
You’ll find details of each fund in the app, but here’s a quick overview:
Balanced fund – The fund’s risk profile is 3 out of 5
Cautious fund – The fund’s risk profile is 1 out of 5
The Conservative Plan - The fund’s risk profile is 2 out of 5
The Dynamic Plan - The fund’s risk profile is 4 out of 5
Adventurous fund – The fund’s risk profile is 5 out of 5
The Ethical Plan - The fund’s risk profile is 5 out of 7
Most funds invest in a mix of things like shares, bonds and other assets. The difference is how much risk they take to try to grow your money. Each fund’s fact sheet includes its investment objectives, asset types, and costs, which are essential to review before making a decision.
What does “risk” mean?
Risk means that the value of your pension might go up and down. A higher-risk fund could grow more in the long term, but you might see bigger short-term ups and downs. Risk level translates into volatility level in how your funds grow or dip over the market cycles.
If you’re closer to retirement, you might prefer a more cautious approach. If you’ve got many years to go, you might be more comfortable with taking more risks now to secure a bigger pot when you are approaching retirement.
All investments carry some risk, and you may receive back less than you invested. Consider your financial goals and level of comfort with risk before selecting a fund.
What if I don’t know which to choose?
That’s completely normal. That’s why Penny automatically puts you in our default fund – the Balanced fund – when you join. It’s designed to be suitable for most people, especially if you're unsure about what to choose.
You can switch funds at any time in the Penny app.
Need help deciding?
We can't give you personal advice, but you can learn more about the funds in your app. Or, speak to an independent financial adviser if you want help choosing what’s right for you.