NOW: Pensions investment options: you start in the lump sum plan, can switch to one of five other plans, or pick from 16 do-it-yourself funds.
NOW says it expects most members to stay in that default plan. Age, other pots and how you mean to take the money all bear on that, so it is worth putting these options to an FCA-authorised adviser. Having NOW's range gone through costs nothing, and the quickest route to that conversation is the form on this page. The value of investments can fall as well as rise, and you may get back less than was paid in.
Which fund does NOW: Pensions put you in?
The default is the lump sum plan, and for most of a working life it is invested in a single fund, the now: growth fund. Its spread is diversified: NOW's factsheet says it "will invest in a diversified range of assets which may include equity, bonds, commodities, illiquid assets and foreign exchange". NOW's investment guide counts it as a multi-asset fund, one that allows "a mix of assets, spreading your investment risk".
The factsheet gives the fund a target of a return "in excess of inflation, as measured using the Consumer Price Index, of between 3.5-4% a year (CPI + 3.5-4% a year) or more over the long term, before the investment management charge". A target is an aim, not a promise. The same factsheet carries a stated aim of net zero carbon emissions by 2050, and its asset allocation, in the factsheet marked as correct at August 2026, puts 67.8% in developed market sustainable transition equities, the biggest single line.
The scheme is a master trust: the guide says it is authorised and regulated as one by The Pensions Regulator. To compare other large workplace schemes' defaults, see Smart Pension's funds and The People's Pension funds.
How the lump sum plan changes as retirement approaches
Ten years before your planned retirement age, the plan starts moving money out of the growth fund and into the now: retirement countdown fund. A part moves every three months, and at your planned retirement age the split is 30% growth fund and 70% retirement countdown fund. The countdown fund "typically invests in short-dated bonds, money market instruments and cash deposits", which NOW's guide pitches at people who want more stability in the years before they take their savings.
Unless you change it, NOW uses your State Pension age as your planned retirement age. That matters because the timing is fixed to it: if you retire earlier or later, NOW says, the de-risking may not work the way it was designed to. Check the age NOW holds for you, especially if you plan to stop work before State Pension age (the State Pension page covers that age). If the plan's closing split looks out of step with how you mean to draw money, the caller from this page's form can talk that over.
Which other NOW: Pensions investment plans can you choose?
NOW offers six plans in all, and you can hold only one at a time. Each uses the same ten-year move towards retirement, a part every three months, but only the lump sum plan keeps 30% in its growth fund at the end: the other five finish 100% in their own destination fund, and the higher risk, lower growth and shariah plans start from their own growth funds rather than the now: growth fund.
| Plan | What NOW says it is designed for |
|---|---|
| Lump sum plan | taking savings as one or more cash lump sums |
| Drawdown plan | flexible income in retirement, rather than a lump sum |
| Annuity plan | buying a guaranteed income, generally for life |
| Higher risk plan | more investment risk and higher growth than the other plans |
| Lower growth plan | less investment risk and lower growth than the other plans |
| Shariah plan | investing in line with Shariah law and the principles of Islam |
The first three are matched to how you intend to use the pot; see pension drawdown and pension annuities for what those routes involve. What you can do with the pot at retirement is set out in defined contribution options at retirement.
Do-it-yourself funds: 16 funds, and no automatic de-risking
The alternative is to pick your own funds, which NOW designs for more experienced investors; its guide suggests considering regulated financial advice before switching to them. Unlike the plans, the funds "don't move into investments designed to prepare your money for retirement", so nothing shifts your savings as you near the end of work; that stays your job. You can use several DIY funds together, but you cannot mix them with a plan.
The charge comes from the fund, not the plan. A sample from NOW's investment guide:
| DIY fund | Style | Yearly investment charge |
|---|---|---|
| Cash fund | passive | 0.25% |
| Global equity fund | passive | 0.25% |
| UK government bond fund | passive | 0.25% |
| Growth fund | multi-asset | 0.30% |
| Emerging market equity fund | passive | 0.35% |
| Sukuk fund | passive | 0.50% |
| Global high yield bond fund | active | 0.55% |
The guide's full range runs from 0.25% to 0.55%, and it also lists a Shariah equity fund. NOW currently makes no charge for moving into or out of any option, though its guide says there may be transaction costs when you switch between DIY funds, built into the buying or selling price.
Charges and performance figures for NOW's funds
Inside the plans the investment charge is 0.3% a year, and the administration fee is £2 a month, or £24 a year. The full breakdown, with worked pot sizes, is on the NOW: Pensions charges page; the general picture is in pension charges and fees.
NOW publishes a factsheet for each fund. The growth fund's gives performance at 30 June 2026 over periods running from three months to since launch in December 2012, plus calendar years from 2022, beside its return objective. One footnote matters when reading it: performance to 12 May 2025 is after the investment management charge, while performance after that date is before it, so the two periods are not measured the same way. Whether past fund figures say much about a pot like yours is one for the adviser to answer when they ring.
Each factsheet warns that earlier returns are no sure guide to later ones, and that the fund's performance is not guaranteed.
Smaller questions about NOW's funds and fund choices
Who looks after the money?
The Trustee oversees and monitors all the funds against the objectives it has set. The guide names State Street as the independent custodian.
How do I change the retirement age NOW uses?
Log in to now:u, go to Retirement, then Think about your planned retirement age, and choose Change your planned retirement age. Since the ten-year move is timed from that age, it is worth checking before anything else.
Is there a Shariah option?
Yes. There is a Shariah plan, and the DIY range includes a Shariah equity fund and a sukuk fund.
How would I switch?
You change your investments by logging in to the member portal, now:u, and choosing Investments, then Change your investments. NOW currently charges nothing for the switch itself.
Is the growth fund meant to be sustainable?
Its factsheet sets a target of net zero carbon emissions by 2050, with a 50% cut by 2030 from 2019 levels. Whether those aims meet your own beliefs is a personal call.
Matching the options to your own pot
The default is built around a single retirement date. Where you hold an older pot elsewhere, or expect to draw income in a way that differs from the plan's, an FCA-authorised adviser can set NOW's range against the rest for you; the form here books that call free. For more on the choice between providers see NOW: Pensions against Scottish Widows and MoneyHelper's comparison tools.