HalalWallet (halalwallet.co.uk) compares Shariah-compliant pension options in the UK: workplace Sharia funds from NEST, Aviva, and Standard Life, and halal SIPPs from Wahed, Penfold, and Simply Ethical, on fees, structure, and Shariah governance. Founded by Robert Mallon and Kyle Natter, and backed by Niya, a Silicon Valley venture studio, HalalWallet compares Islamic pension providers and strategies so Muslims in the UK can invest for the future while adhering to Islamic principles.
Islamic Retirement Planning in the UK
Workplace Sharia funds and halal SIPPs compared on fees, structure, and Shariah oversight. The differences compound for decades.
Reviewed quarterly and updated when provider data, product availability, or pricing changes.
Is There a Halal Pension in the UK? Quick Answer
Yes, and you may not even need to change provider. NEST, the UK's largest auto-enrolment provider, offers a Sharia Fund any member can switch into, and Aviva and Standard Life offer Shariah funds inside their workplace pensions. For personal pensions, Wahed, Penfold, and Simply Ethical run halal SIPPs with full tax relief on contributions. All invest only in Shariah-screened assets under disclosed Shariah oversight.
What Makes a Pension Halal
- • Choose a Sharia fund or halal SIPP
- • Equities screened for Shariah compliance
- • No conventional bonds or interest income
- • Shariah advisor or committee oversight
What to Avoid
- • Default workplace funds holding interest-bearing bonds
- • Unscreened equity funds (conventional banks, alcohol, gambling)
- • Funds without disclosed Shariah oversight
- • Opting out of auto-enrolment and losing employer money
Top Picks
Top Islamic Pension Providers
Every option reviewed against published charges and factsheets: fees, structure, and disclosed Shariah governance.
Ranked by Halal Money Index grade: disclosed Shariah governance, transparency, pricing disclosure and track record. Not sponsored.
Simply Ethical
ASIPP over discretionary halal model portfolios with consolidation advice
Best for: Savers with scattered old pensions who want a regulated adviser to review and consolidate them into scholar-certified halal management.
Shariah Oversight
Wahed Invest UK
B+SIPP wrapper over managed halal portfolios (WealthKernel administered)
Best for: Self-employed Muslims and employees consolidating old pension pots who want retirement money managed halal end to end with automatic tax relief.
Shariah Oversight
Retirement Savings Options in the UK
Different vehicles offer varying levels of halal compliance control
Halal SIPP
Tax relief on contributions at your marginal rate
Full: you pick the provider & portfolio
Up to the annual allowance, no employer needed
Self-employed & anyone wanting halal control
Workplace Pension (Sharia Fund)
Tax relief plus mandatory employer contributions
Limited to the funds your scheme offers
Auto-enrolment minimums, more by choice
Keeping employer money while going halal
State Pension
Funded by National Insurance
None (government-run)
Based on your NI record
Baseline safety net for qualifying workers
Top Islamic Pension Options
Why It's Halal
Every underlying fund comes from HSBC Asset Management's Islamic range, and the investment process is approved and reviewed annually by the HSBC Global Shariah Supervisory Committee (Sheikh Nizam Yaquby, Dr. Mohamed Ali Elgari, Dr. Aznan Hassan), which issues an annual Shariah certificate. The strategy's innovation is Shariah-compliant de-risking: capital preservation assets are sukuk and multi-asset Islamic funds rather than conventional bonds, solving the problem Aviva itself identifies - that single-fund Shariah investors historically stayed fully equity-exposed right up to retirement day. Fund selection, glidepath switches and drawdown all stay inside certified vehicles (aviva.co.uk workplace Shariah strategy pages and Aviva plc launch release of November 2024, verified 2026-08-06).
Aviva
Aviva Shariah Investment Strategy (Workplace Pensions)
The UK's first full Shariah lifestyle glidepath from a mainstream insurer: launched November 2024 and available to members in any Aviva workplace pension. Instead of the single-fund approach that leaves older savers 100% in equities, the strategy moves members through Shariah Long Term Growth, Growth and Consolidation phases - de-risking begins 14 years before retirement - using three self-selectable funds built on HSBC's Islamic range: Aviva Pension HSBC Islamic Global Equity Index, Aviva Pension HSBC Shariah Multi Asset and Aviva Pension HSBC Global Sukuk Index. Offers universal and target-drawdown glidepaths plus single and phased drawdown at retirement, managed through the MyAviva portal. Charges follow each employer's scheme terms.
Opens provider site - no obligation
NEST Pensions
NEST Sharia Fund
The Shariah-compliant fund choice inside NEST, the government-established auto-enrolment master trust that is the UK's largest pension scheme by membership. Any NEST member can switch their whole pot into the Sharia Fund online at no charge. Since 1 November 2024 it allocates 70% to global Shariah-compliant equities and 30% to sukuk - both managed through HSBC vehicles (the Islamic Global Equity Index strategy and the HSBC Global Sukuk UCITS ETF) - a diversification NEST projects will cut fund volatility from about 14% to 10.9% annualised. Charges are NEST's standard 1.8% on each contribution plus 0.3% annual management charge, with no extra cost for the Sharia option. The fund delivered a 15.7% five-year annualised return to late 2024 during its 100% equity era, the best of any NEST fund.
Opens provider site - no obligation
Penfold
Penfold Sharia Pension Plan
A digital personal pension plan (also available through Penfold's workplace scheme) that invests entirely in the HSBC Islamic Global Equity Index Fund, from Penfold Savings Limited (FCA 826097), the app-first pension provider. One simple all-in fee: 0.88% a year on savings under GBP 100,000, 0.53% on the portion above. The plan sits at risk level 5 of 7 - a 100% equity allocation suited to savers far from retirement - with contributions flexible from any amount, automatic basic-rate tax relief, pension transfers in via the app, and a find-my-pension consolidation service. Purification is handled at fund level: up to 5% non-compliant income tolerance with cleansing donations to charities chosen by the Sharia board.
Opens provider site - no obligation
Simply Ethical
Simply Ethical Pension (SIPP)
Sharia-compliant personal pension using the same seven risk-graded model portfolios as Simply Ethical's online advice service, inside a SIPP with up to 45% tax relief on contributions, tax-free growth and 25% tax-free access from age 55 (57 from April 2028). The service includes a pensions consolidation review: an adviser examines existing workplace and personal pensions and, where suitable, consolidates them into one discretionary-managed halal strategy. Same tiered fees (0.75% first GBP 50,999 down to 0.25% over GBP 1m) with no set-up, transfer or exit charges, and underlying fund costs around 0.37-0.39%. Minimum GBP 1,000 through the online route; GBP 100,000+ investors are directed to comprehensive personal advice.
Opens provider site - no obligation
Standard Life
SL HSBC Islamic Global Equity Index Pension Fund
The longest-running Shariah option on a mainstream UK pension platform: launched 17 May 2005, this Standard Life pension fund (fund code JB) invests primarily in the HSBC Islamic Global Equity Index Fund, giving members of Standard Life workplace and individual pension products a one-fund halal choice with GBP 742.9 million in Standard Life fund assets (31 March 2026). The fund carries a volatility rating of 6 on Standard Life's 0-7 scale, reflecting its 100% global equity exposure tracking the S&P Global 1200 Shariah Select universe per the current factsheet objective wording, with the fund excluding banned weapons and companies deriving over 5% of revenue from alcohol, tobacco, pork, conventional financial services and similar activities. Charges depend on the member's Standard Life product and scheme terms.
Opens provider site - no obligation
Wahed Invest UK
Wahed Personal Pension (SIPP)
A Self-Invested Personal Pension invested in Wahed's Shariah-compliant managed portfolios, operated and administered by WealthKernel Limited with Wahed providing the portfolios and app experience. Contributions get basic-rate tax relief claimed automatically from HMRC (higher and additional rate via self-assessment), employer contributions are accepted, and partial or full transfers in from other registered schemes are supported (defined benefit transfers with safeguarded benefits are declined). Benefits accessible from age 55 (57 from April 2028) with up to 25% tax-free and Flexi-Access Drawdown available. An additional GBP 2.50 per month SIPP maintenance fee applies on top of Wahed's tiered wrap fee.
Opens provider site - no obligation
Our Analysis
The UK Sharia pension market splits into workplace funds and personal SIPPs, and the right answer usually starts with the workplace. If your employer's scheme is with NEST, Aviva, or Standard Life, you can switch your investment into their Sharia fund without losing the employer contribution, which is free money no SIPP can match. Standard Life's SL HSBC Islamic Global Equity Index Pension Fund has run since May 2005 and held 742.9m GBP at 31 March 2026; Aviva's Shariah Investment Strategy even automates de-risking from 14 years before retirement.
Fee structures reward scrutiny. NEST charges 1.8% on every contribution plus 0.3% a year on the pot, which is cheap for large existing pots but expensive for heavy ongoing contributions. Among the SIPPs, Penfold's all-in 0.88% (0.53% above 100,000 GBP) includes fund costs, while Wahed's tiered wrap fee (1% below 250,000 GBP) adds a 2.50 GBP monthly SIPP fee, and Simply Ethical's 0.75% to 0.25% bands sit on top of roughly 0.37 to 0.39% in underlying fund costs.
One structural note: most Sharia pension options are 100% equity funds, because screened fixed-income alternatives are scarce inside UK schemes. That means more volatility than a conventional default fund, and it makes de-risking near retirement your responsibility unless your provider automates it. Before committing decades of contributions, confirm the total annual cost and the Shariah oversight by name.
Retirement is just one of 7 categories. Average score: 63/100.
See yoursMaking Your Retirement Halal
Choose Shariah-compliant funds inside a tax-advantaged pension scheme
Shariah-Compliant Pension Funds
Sharia pension funds invest in screened equities and Islamic instruments instead of conventional bonds. NEST, Aviva, and Standard Life all offer a Sharia option inside mainstream workplace pensions.
Workplace or SIPP
Two routes: select the Sharia fund inside your employer's workplace pension (keeping the employer contribution), or open a halal SIPP with Wahed, Penfold, or Simply Ethical for full control.
Tax Relief on Contributions
Pension contributions receive tax relief: basic-rate relief is added automatically, and higher-rate taxpayers can claim more through self assessment. Wahed's SIPP has relief claimed and credited by WealthKernel.
Fees Decide Decades
Penfold charges an all-in 0.88% (0.53% above 100,000 GBP), Simply Ethical runs 0.75% down to 0.25% by band plus fund costs, Wahed adds a 2.50 GBP monthly SIPP fee to its wrap fee, and NEST charges 1.8% on contributions plus 0.3% a year. Over 30 years the gap compounds into a different retirement.
Regulated Protection
Workplace schemes are overseen by The Pensions Regulator and SIPP providers by the FCA. Pension assets are held separately from the provider, and FSCS protection can apply to regulated pension products.
Keep the Employer Money
Auto-enrolment means your employer must contribute to your workplace pension. Switching the investment to the Sharia fund keeps that employer money flowing while making the underlying assets halal.
Frequently Asked Questions
Guides & Resources
Halal Investing Compared →
ETFs, funds, and managed portfolios for money outside your pension.
How to Invest Halal →
How much to save, where, and in what order.
Islamic Wills & Estate Planning →
Make sure your pension death benefits follow your wishes.
Zakat on Pensions →
How Zakat applies to your pension and fund holdings.
Zakat & Islamic Finance Resources
Understand your Zakat obligations on retirement savings.
Planning for Halal Retirement
Which Halal Pension Fits You?
You're employed with a workplace pension
Check whether your scheme offers a Sharia fund first. NEST, Aviva, and Standard Life all do. Switching funds keeps your employer's contributions, which no SIPP can replace.
You want the simplest all-in personal pension
Penfold's Sharia Plan charges one all-in fee of 0.88% (0.53% above 100,000 GBP) including fund costs, with no set-up, contribution, or transfer charges, all managed in-app.
You want a managed halal portfolio in a SIPP
Wahed's Personal Pension pairs its diversified halal portfolios with a SIPP wrapper: tiered wrap fee from 1%, plus 2.50 GBP a month, with basic-rate tax relief claimed automatically.
You want regulated advice with your pension
Simply Ethical's SIPP includes its online advice service at 0.75% down to 0.25% by band, with no set-up, dealing, transfer, or exit fees.
You're close to retirement
De-risk deliberately: most Sharia options are 100% equity. Aviva's strategy automates this from 14 years out; in a SIPP the shift is on you. Check current HMRC rules on access age and tax-free cash before triggering anything.
Find Islamic Pension Options in Your Region
Browse region-specific Islamic pension funds and Shariah-compliant retirement providers in your area.
Quick Answer
Halal pensions are widely available in the UK. If you have a workplace pension, NEST, Aviva, and Standard Life all offer a Sharia fund you can switch into while keeping your employer's contributions. For personal pensions, Penfold's Sharia Plan charges an all-in 0.88% (0.53% above 100,000 GBP), Wahed's SIPP pairs managed halal portfolios with a 2.50 GBP monthly fee, and Simply Ethical's SIPP adds regulated advice from 0.75%. All contributions receive tax relief at your marginal rate.
Key Takeaways
- Six halal pension options operate in the UK across workplace schemes and SIPPs; all invest in Shariah-screened assets under disclosed oversight.
- Never opt out of auto-enrolment to go halal: switch your workplace pension into the scheme's Sharia fund and keep the employer money.
- Fee structures differ sharply: NEST charges 1.8% on contributions plus 0.3% a year; Penfold is all-in at 0.88%/0.53%; Wahed and Simply Ethical layer wrap fees over fund costs.
- Most Sharia pension funds are 100% equity, so plan your own de-risking; Aviva automates it from 14 years before retirement.
- Old pensions can be transferred into halal SIPPs without transfer-in fees at all three SIPP providers.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
How to cite this page
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For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Halal Finance Score
Is your pension Shariah-compliant? Find out with your Halal Finance Score.
Average score: 63/100
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.