Insights · Pensions
Shariah-compliant pensions and SIPPs: the 2026 options
Pensions are where the Shariah advice gap is most visible: the largest Muslim wealth pool, the fewest recorded preferences. Here is the current provider landscape and what it means for your file.
Workplace pensions with Shariah options
| Provider | Shariah option | Since |
|---|---|---|
| Aviva | Workplace Shariah Investment Strategy (HSBC Islamic Global Equity Index, Shariah Multi Asset, Global Sukuk underlying) | Nov 2024 |
| Legal & General | Shariah lifestyle and global equity self-select | Sep 2024 |
| Smart Pension | Halal workplace pension (with Wahed) | 2024 |
| Penfold | Shariah pension option | Live; 0.88% under £100k, 0.53% above (checked 31 Oct 2026) |
| PensionBee | Shariah plan | Live |
| Standard Life | Shariah Universal SLP | Live |
| Nest | Shariah Fund | Live; used by an estimated 33,000–40,000 members (press reports, October 2026) — a small fraction of Nest's membership |
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Personal pensions and SIPPs
The two SIPP options advisers ask about first: the Simply Ethical SIPP (seven Shariah portfolios, available on Fundment) and the Wahed SIPP (direct-to-consumer only — not available on adviser platforms).
For transfer cases, the SIPP wrapper is usually the easy part — the diligence is in what goes inside it. The verified fund universe (see our verified funds list) is ISA/SIPP-eligible on the major platforms, and a Shariah MPS can sit inside a SIPP where the platform holds it. Record the client's Shariah preferences (screening standard, sukuk tolerance, cash-interest position) before the platform choice, not after — they change the answer.
What to evidence on the file
- ✓The client's faith-based preferences, in their own words
- ✓Dated research behind each option considered — including the ones rejected
- ✓The platform's cash-interest treatment against the client's preference
- ✓The annual re-screening plan — status is a point-in-time fact
Frequently asked questions
Which pension providers offer a Shariah fund?
Aviva, L&G, Smart Pension, Penfold, PensionBee, Standard Life and Nest all offer Shariah or halal options in workplace or personal pensions as of 2026.
Can I transfer an old pension to a Shariah SIPP?
Usually yes — the SIPP wrappers on major platforms are Shariah-fund capable; the diligence is in fund eligibility, share class and the platform's cash-interest treatment.
Is my workplace pension default halal?
Most defaults are conventional diversified funds. Several providers now offer a Shariah self-select or default alternative — check the scheme's fund list and record the client's preference either way.
Do I have to record a client's religious preferences?
Consumer Duty expects solutions to meet client needs and preferences, including faith ones. Recording them protects both the client and your file.