The end of the tax year is coming on 5 April, and with it, the opportunity to use some of your allowances.
A pension is one of the most tax-efficient ways to invest. You can get up to 45% tax relief when you pay money in. And when the time comes to take it out, you can usually take up to 25% tax free with the rest taxed as income.
You also don’t have to pay UK income tax or capital gains tax on investments in a pension.
So, it’s a useful way to invest for retirement. You'll usually need to be at least 55 (rising to 57 from 2028) before you can access the money in your pension.
Here’s a look at the most bought funds with our Self-Invested Personal Pension (SIPP) clients last month.
Tax and pension rules change, and any benefits will depend on individual circumstances. Scottish tax rates are different and different benefits apply.
Where did our pension clients invest their money in February 2024?
Here’s a look at the most bought actively-managed funds (trying to beat the market) and tracker funds (trying to track the market), by HL's SIPP investors in February 2024. This is by number of trades minus any sales.
This article has been written independently of our investment research team to offer some inspiration, but isn't personal advice or a guide on how or where to invest.
Unlike cash, investments will rise and fall in value, so you could get back less than you put in. You should choose investments based on your own objectives and attitude to risk. If you're not sure whether an investment is right for you, ask for financial advice.
Most bought active funds in February | Key Investor Information |
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Most bought tracker funds in February | Key Investor Information |
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Funds are listed alphabetically.
HL Multi-Manager Funds are managed by our sister company Hargreaves Lansdown Fund Managers Ltd.
How to pick investments for a pension
Investing in these funds won't be right for everyone. Only invest in a fund if its objectives align with your own, and there's a specific need for that type of investment within your portfolio. Investors should understand the specific risks of a fund before they invest and be investing for the long term (five years or more).
It's also important not to put all your eggs in one basket. Spreading your money and diversifying, gives you access to more opportunities and can reduce risk.
If you're looking for inspiration from our investment research team on where to invest your pension, you can use our Wealth Shortlist.
It's designed to help investors build and maintain a well-balanced and diversified portfolio. We've put funds under the microscope to make sure the list only contains the funds that our in-depth analysis shows have the greatest long-term performance potential.
Leave day-to-day investment decisions to the experts
If you’re investing or looking to invest for retirement and want a team of experts to look after the day-to-day investment decisions, consider our Ready-Made Pension Plan.
It’s a simple, low-cost investment solution, designed specifically for the HL SIPP. The plan is managed by experts and aims to grow your money when you’re younger, then lower risk as you get closer to retirement.
The underlying funds of the plan are managed by our sister company Hargreaves Lansdown Fund Managers Ltd.
It's quick and easy to open or top up an HL SIPP and takes just minutes online once you have read all the important information.
If you do this before the tax year deadline on 5 April, you can make the most of this year’s allowance.