The end of the tax year, 5 April, is just hours away. And with it, the opportunity to use your pension allowance.
A pension is one of the most tax-efficient ways to invest. You can get up to 45% tax relief when you pay money in. And you when you come to take it out, you can take up to 25% tax free with the rest taxed as income.
You also don’t have to pay UK income tax or capital gains tax on investments in a pension.
However, you haven’t got long left to use this year’s allowance.
Here’s a look at the most popular funds HL’s Self-Invested Personal Pension (SIPP) and Drawdown clients bought last month.
Tax and pension rules change, and any benefits will depend on individual circumstances. Scottish tax rates are different.
You'll usually need to be at least 55 (rising to 57 from 2028) before you can access the money in your pension.
Where did HL's pension clients put their money in March 2024?
The tables below show the most bought actively-managed funds (trying to beat the market) and tracker funds (trying to track the market), by HL's SIPP and Drawdown investors in March 2024. This is by number of trades (minus any sales).
This article has been written independently of our investment research team to offer some inspiration but isn't personal advice or a guide on how or where to invest.
Unlike cash, investments will rise and fall in value, so you could get back less than you put in. You should choose investments based on your own objectives and attitude to risk. If you're not sure whether an investment is right for you, ask for financial advice.
HL SIPP clients
Most bought active funds in March | Key Investor Information |
|---|---|
Most bought tracker funds in March | Key Investor Information |
|---|---|
HL Drawdown Clients
Most bought active funds in March | Key Investor Information |
|---|---|
Most bought tracker funds in March | Key Investor Information |
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Funds listed alphabetically.
How to pick investments for a pension
Investing in funds won't be right for everyone. Only invest in a fund if its objectives align with your own, and there's a specific need for that type of investment within your portfolio. Investors should understand the specific risks of a fund before they invest and be investing for the long term (five years or more).
It's also important not to put all your eggs in one basket. Spreading your money and diversifying, gives you access to more opportunities and can reduce risk.
If you're looking for inspiration from our investment research team on where to invest your pension this tax year, explore our latest SIPP investment ideas.
Or you can use our Wealth Shortlist. It's designed to help investors build and maintain a well-balanced and diversified portfolio. We've put funds under the microscope to make sure the list only contains the funds that our in-depth analysis shows have the greatest long-term performance potential.
Leave day-to-day investment decisions to the experts
If you’re investing or looking to invest for retirement and want a team of experts to look after the day-to-day investment decisions, consider our Ready-Made Pension Plan.
It’s a simple, low-cost investment solution, designed specifically for the HL SIPP. The plan is managed by experts and aims to grow your money when you’re younger, then lower risk as you get closer to retirement.
The underlying funds of the plan are managed by our sister company Hargreaves Lansdown Fund Managers Ltd.
It's quick and easy to open or top up an HL SIPP and takes just minutes online. Make sure you read the important information about the product first, including the Key Features and Contribution Checklist to help you understand if it’s right for you.
If you do this before 11:59pm on 5 April, you can make the most of this year’s allowance.