No halal pension in the UK can be named as the best for everyone; here is how Shariah-compliant funds are screened and who publishes one.
The best halal pension in the UK depends on the saver, so no fund is ranked here. What can be compared is how each provider says its fund is screened for Shariah compliance, who oversees that screening, and what the option costs, set out below in the providers' own words. Pension Wise, the free government-backed MoneyHelper service, explains the choices for drawing on a pension. Anyone wanting their own pensions reviewed can submit the form on this page; a telephone call then follows, free, from an FCA-authorised adviser firm. For costs in general, see pension charges and fees.
Why this page does not rank funds
Naming one fund for every reader would be a personal recommendation, which this page does not make. Any of these funds can drop in value as readily as it can grow, and what comes back may be less than went in; a Shariah screen does not change that. Nest says of its own fund that "there's a chance that you could get more or less than you put in". Which option fits turns on when the money is needed, the size of fall a saver could bear and their other pensions. Wider comparisons are on comparing pension providers and workplace schemes compared.
How providers say a fund is screened for Shariah compliance
Each provider describes its own screening, and nothing below is this site's view of what is Shariah-compliant. Read together, the descriptions point to three layers.
A supervisory board or committee of scholars
The People's Pension says its Shariah Fund invests according to principles agreed by a supervisory board of Shariah scholars, made up of Islamic scholars who sit on the HSBC Shariah Supervisory Committee, which "determines which investments are suitable for investment and which do not meet Shariah law requirements". Aviva's page says an independent committee of Islamic scholars reviews the underlying funds every year, and that the HSBC Global Shariah Supervisory Committee "issues an annual Shariah certificate". Nest says its investments are "screened by islamic scholars". PensionBee says the investments in its plan are "approved by an independent Shariah committee".
Screening by business activity
Standard Life's June 2026 fund guide (PP5AB 0626) says Sharia-compliant investments "usually avoid alcohol, tobacco, pork products, conventional banking and finance, weapons and certain types of entertainment". The People's Pension gives a threshold for its fund: a company that gains more than 5% of its annual revenue from alcohol, tobacco, pork-related products, non-Islamic financial services, weapons and defence, or entertainment such as casinos, cinema, pornography and music is excluded. Nest's list is shorter and given as examples: alcohol, adult entertainment and pork products. The lists are not identical, and each is that provider's own description.
Interest, debt and "purification"
Aviva's guide lists the Islamic finance conditions applied alongside exclusions, among them "Riba - ban on interest payments or investments with interest element", a ban on uncertainty (gharar) and a ban on speculation (maisir). It adds that any small share of revenue from non-compliant industries "must be less than 5% according to an independent Shariah Committee", and that the funds give that impure income to BBC Children in Need. The People's Pension says the committee sets limits on how much firms can borrow and how much interest income they can receive, and that a company's income that is not Shariah compliant can be "purified". Nest says its fund "avoids types of investments that pay or receive interest, such as company or government loans", and that it holds sukuk, which it calls "an Islamic form of bonds".
Which UK providers publish a Shariah-compliant option
This is not a full list and not a ranking. It names, in alphabetical order, firms whose own documents describe a Shariah-compliant pension option, checked on 19 October 2026, with each published charge and the date of the document it comes from. Charges change and are often only part of the cost, so check the current document.
| Provider | Option, as the provider describes it | Charge published, and its date |
|---|---|---|
| Aviva (workplace pensions) | Aviva Shariah Investment Strategy, three funds drawn from HSBC's Shariah range, with a glidepath towards retirement | Depends on the scheme; Aviva's member guide (print code SP992439 1125) says to check your scheme literature or online account |
| Nest (workplace) | Nest Sharia Fund, one of five funds, in Sharia-compliant company shares and sukuk | Nest's fees page (snapshot 1 August 2026): 1.8% on each new contribution plus an annual management charge of 0.3% of the pot value, the same whatever fund |
| PensionBee | Shariah Plan, managed by HSBC Global Asset Management and State Street | 0.95% a year for pots up to £100,000, halved on the part above (plan page, read 19 October 2026) |
| Smart Pension (workplace) | Halal Workplace Pension, announced 26 February 2024, and a Halal Investment Strategy among self-select options | No charge read for this option; ask the scheme |
| Standard Life (Personal Pension) | Sharia Universal lifestyle profile; SL HSBC Islamic Global Equity Index Pension Fund; SL HSBC Shariah Multi Asset Pension Fund | Guide PP5AB 0626 (June 2026): total fund charge 0.38% for the profile, 0.20% and 0.60% for the two funds, each before a 0.45% service charge |
| The People's Pension (workplace) | Shariah Fund, global shares through the HSBC Amanah Global Equity Index, managed by HSBC Global Asset Management | Management charge 0.5% (Chair's statement, scheme year ending 31 March 2025; snapshot 18 April 2026), plus a flat charge that rises to £6.50 a year from 1 April 2026 on pots of £106.50 and over |
Two cautions. HSBC appears behind several of these options, but one manager's name does not make two funds or their charges alike. And the options differ in shape. Standard Life offers a lifestyle profile and individual funds, Aviva a three-fund strategy that moves money as retirement nears, and The People's Pension a single fund that it says must hold all of your savings with it if selected. More detail on charges is on the sibling pages for Standard Life, The People's Pension, PensionBee, Smart Pension and Aviva.
Workplace pensions and Nest's Sharia fund
Under automatic enrolment the employer picks the scheme, so a Shariah-compliant option is something to look for inside it; how auto-enrolment works explains who must be enrolled. Nest's explanation starts from interest: "The Islamic faith takes the view that you shouldn't make money from money - known as interest", and its Sharia Fund "was created with that in mind". The fund is open to members of any faith, and because it uses "just two types of market, unlike the rest of our funds", it "carries higher investment risk". Members move into it through the online account, and switching funds carries no charge. Nest's fund range and charges are covered on Nest's charges page and in is Nest good.
An employee can ask the employer or the scheme whether a Shariah option is offered. If a workplace pot and older pensions both bear on the choice, an FCA-authorised adviser could weigh the two together; completing the form on this page arranges that call without charge.
Past performance and why it is not a ranking
This page gives no performance figures. Where a firm does show past performance, the FCA's past-performance rule (COBS 4.6) requires "a prominent warning that the figures refer to the past and that past performance is not a reliable indicator of future results". PensionBee's Shariah plan page carries a warning in similar terms.
A fund's recent record also depends on what it holds. The People's Pension says that because of its exclusions the Shariah Fund "invests in a smaller number of companies compared to our other funds", so the value of savings is "more likely to go up and down more often compared with some of our lower‑risk funds, especially in the short term". Standard Life says its Sharia-compliant lifestyle profile "has more risks than other lifestyle options in our investment range" and is "less diversified because of Sharia screening".
Questions to ask before choosing
Pension Wise appointments set out the ways to draw money from a pot, for anyone 50 or over who has a defined contribution pension based in the UK, and for some younger people, such as those who have inherited a pension. If you pay for advice, MoneyHelper's guidance is to use an FCA-regulated adviser, and the cost has to be set out before you commit. Points to raise with a provider, scheme or adviser:
- Which scholars or committee approve this fund, and is there a certificate or review I can read?
- What are the business-activity screens, the limits on debt and interest income, and the treatment of any impure income?
- Is the option a single fund or a strategy that moves money as I near retirement, and what does that mean for risk close to taking money?
- Must all my savings with this provider go into it, or can I split them?
- Adding every charge together, flat, contribution and transaction costs included, what would a pot my size pay a year?
- If I switch from my current fund or move an old pension in, what could it cost? See how to transfer a pension.
Halal pensions: questions people ask
What is a Shariah-compliant pension fund?
It is a fund that its provider says is invested in line with Islamic principles: companies are screened for what they do and how they are financed, and scholars or a Shariah committee oversee the screening. Detail differs by provider.
Do I have to be Muslim to hold one?
Not at Nest, which says "anyone can invest in this fund". Aviva's member guide calls its strategy "An ethical investment choice for everyone, regardless of belief". Other providers set their own terms, so ask.
Which Shariah pension funds are available in the UK?
The table above names several providers that publish one, with dated charges, and it is not a full list. Whether you can reach a given option depends on whether you are using a workplace scheme or choosing a personal pension; a SIPP works differently again.
Can I put only part of my pension into a Shariah fund?
That depends on the provider. The People's Pension says that if its Shariah Fund is selected, 100% of your savings with it must be invested in the fund.
Are Shariah pension funds riskier than ordinary ones?
Nest, Standard Life and The People's Pension each describe their option as carrying more risk than some of their other choices, for reasons such as holding fewer types of investment. That is their description of those funds, not a rule for every fund.
How have Shariah pension funds performed?
This page quotes no figures. Check the provider's current factsheet, its dates and the warning beside the chart.
Your next step
Faith, age, other pensions and appetite for risk all bear on which option, if any, fits, and a table of providers cannot weigh them. For a talk about your own Shariah options, use the form on this page; once it arrives, an FCA-authorised adviser firm rings you back, with nothing to pay.
Sources (all read 19 October 2026 unless a date is given): Standard Life guide PP5AB 0626 (June 2026); Nest Sharia Fund and fees pages; The People's Pension Shariah Fund, funds and charges pages; Aviva Shariah strategy page and member guide SP992439 (November 2025); PensionBee Shariah plan page; Smart Pension announcement (26 February 2024) and member investments page; COBS 4.6; MoneyHelper on Pension Wise and finding an adviser. Nest, People's Pension and MoneyHelper pages read from archived copies.