Where does your pension go?

When your pension contribution leaves your pay packet, it doesn’t sit in an account somewhere until you need it – we invest it on your behalf.

Investing is different to saving. Along with billions of pounds of other people’s pension contributions, your money is spread around different funds which invest in companies listed on global stock markets, among other things.


Why does how we invest matter?

The companies we invest in make their money from activities like selling consumer goods, healthcare or key technologies. The idea is that as companies grow, so too does the value of your pension. We also think about what the companies are doing in the real world and how they are doing it. We ask things like:

  • are they fair?
  • are they prudent?
  • do they look after the environment and the communities they serve and operate in?

All of this is as important as the returns. In fact, we believe that how companies manage these big issues actually affects the returns they make.

So what they do with the money they receive from pension investors like you, through pension companies like Royal London, can make a big difference on behalf of all of us, to the future of the world.

That’s why as a pension company acting in your best interests and in the best interests of society, our job is to make sure these companies are behaving as responsibly as possible, in every way.

Where we invest

In the table in the next section, you can see the type of companies your pension is invested in. These are the top ten investments in the Royal London workplace ‘default’ pension fund, which 80% of our workplace pension customers are invested in. Default just means the fund selection that is automatically allocated.

You might recognise some of the names - they might even be companies you buy from.

Last updated

The information in this table was accurate and correct on 12 June 2020.

The top 10 companies in the Royal London default pension fund

Company What it does
Shell Oil, exploration and energy
Microsoft Technology and computing software
Astrazeneca Pharmaceuticals
Apple Inc Technology
HSBC Holdings Financial services
Glaxosmithkline Pharmaceuticals
BP Plc Oil, exploration and energy
Amazon.com Online retail
Alphabet Google holding company
Diageo Alcoholic drinks

Find out more about where your pension is invested

Depending on what type of pension you have with us, you can log in to your plan using our website or mobile app and see where your contributions are invested.

You can also find out more about how we use our influence to bring about change in the companies we invest in in our Responsible Investment section.