Cash & Cash Equivalents Pension Funds
Suitable for: Investors seeking capital preservation with minimal exposure to market risk.
Cash and money market funds invest in short-term, highly liquid instruments such as treasury bills, deposits, and commercial paper. They prioritise capital preservation and liquidity over growth.
15
Funds tracked10
Providers+1.3%
Avg. 1yrSelect funds below to compare performance over time
| Fund | Risk | Provider | Subcategory | 1Y | 5Y | 10Y | |
|---|---|---|---|---|---|---|---|
| Royal London BlackRock Euro Environmentally Aware Cash Fund | 1 | Royal London | Money Market | +2.08% | +10.19% | - | |
| AIB Life Cash Fund | 1 | AIB Life | Money Market | +2.04% | - | - | |
| Mercer Aspire Cash Portfolio | 1 | Mercer Aspire | Money Market | +2.01% | +9.79% | +7.14% | |
| Acorn Life Deposit | Acorn Life | Money Market | +1.70% | +7.98% | +3.67% | ||
| Zurich Life Cash | 1 | Zurich Life | Money Market | +1.57% | +6.87% | +2.46% | |
| Standard Life MW Euro Global Liquidity | 2 | Standard Life | Money Market | +1.36% | +6.23% | +0.10% | |
| New Ireland Cash | 1 | New Ireland | Money Market | +1.31% | +6.23% | +0.35% | |
| Irish Life Global Cash Fund | 1 | Irish Life | Money Market | +1.13% | +4.79% | - | |
| Irish Life Cash | 1 | Irish Life | Money Market | +1.13% | +6.62% | +6.62% | |
| Aviva Cash Fund | 1 | Aviva | Money Market | +1.10% | +5.12% | -1.85% | |
| Standard Life Euro Global Liquidity | 2 | Standard Life | Money Market | +1.08% | +4.83% | -2.40% | |
| Bank of Ireland Life Cash | 1 | BOI Life | Money Market | +1.06% | +4.78% | -2.53% | |
| Standard Life Cash Fund | 1 | Standard Life | Money Market | +0.93% | +6.60% | +6.60% | |
| Standard Life Prosperity Euro Global Liquidity | 2 | Standard Life | Money Market | +0.59% | +2.27% | -7.15% | |
| Irish Life Indexed Cash | 1 | Irish Life | Money Market | +0.33% | +3.95% | +3.95% |
Funds in this category by provider
Number of funds each provider offers in this category. Click a row to view that provider's full fund range.
About Cash & Cash Equivalents
Key Points
Cash funds are for preservation, not growth
They're an essential component of lifecycle strategies (landing phase)
Don't hold more in cash than you need for your short-term retirement target
A "cash fund" within a pension still has zero exit tax on growth (unlike a bank deposit)
Royal London's cash fund is an Article 8 cash fund - an uncommon classification in the Irish market for this asset class
What is Cash (as an Asset Class)?
In pension and investment fund terms, "cash" doesn't mean notes in a wallet. It refers to money held on deposit with banks, in money market instruments, and in other very short-term securities. These are the lowest-risk investments available.
Why Cash Funds Exist in Pensions
Cash funds serve specific roles within a pension:
Tax-free lump sum target: If you plan to take 25% of your pension as cash at retirement, holding that portion in a cash fund protects it from market movements in the final years
Temporary parking: A short-term holding while deciding where to invest, or during periods of extreme market volatility
De-risking endpoint: Lifecycle strategies often move a portion to cash in the final months before retirement
The Inflation Problem
Cash funds do not guarantee protection against inflation. If inflation is 3% and your cash fund earns 1%, your money is losing purchasing power every year. This makes cash unsuitable as a long-term investment - but perfectly appropriate for short-term capital preservation.
Cash Funds by Provider
| Provider | Fund Name | Notes |
|---|---|---|
| Acorn Life | Deposit Fund | Bank deposits and short-term instruments |
| AIB Life | Cash Fund | Risk Rating 1 |
| Aviva | Cash Fund | Part of select range |
| Irish Life | Cash Fund | 100% cash and short-term deposits. Risk Rating 1 |
| Mercer Aspire | Cash Portfolio | Cash and money market instruments |
| New Ireland | Cash | Low-risk cash deposits |
| Royal London | BlackRock Environmentally Aware Cash Fund | Risk Rating 1, SFDR Article 8 |
| Standard Life | Cash Fund | Part of the standard range |
| Zurich | Cash | Low-risk cash deposits |
Frequently asked questions about Cash & Cash Equivalents funds
In pension fund terms, cash doesn't mean notes in a wallet. It refers to money held on deposit with banks, in money market instruments, and in other very short-term securities. These are the lowest-risk investments available, rated 1 on the SRI scale, with minimal day-to-day value fluctuation.
Cash funds serve specific roles: protecting the tax-free lump sum portion from market movements in the final years before retirement, providing a temporary holding while deciding where to invest, and acting as the de-risking endpoint in lifecycle strategies that move a portion to cash in the final months before retirement.
All major providers offer cash options: Acorn Life Deposit Fund, AIB Life Cash Fund, Aviva Cash Fund, Irish Life Cash Fund, Mercer Aspire Cash Portfolio, New Ireland Cash, Royal London BlackRock Environmentally Aware Cash Fund, Standard Life Cash Fund, and Zurich Cash.
Cash funds have minimal short-term volatility, but they do not guarantee protection against inflation. If inflation is 3% and your cash fund earns 1%, your money is losing purchasing power every year. This makes cash unsuitable as a long-term investment but appropriate for short-term capital preservation.
Don't hold more in cash than you need for your short-term retirement target. Cash is for preservation, not growth. Most financial planning approaches suggest only holding the portion you plan to take as your tax-free lump sum (up to 25% of your fund) in cash, and only as retirement approaches.
A cash fund within a pension still has zero exit tax on growth, unlike a bank deposit which is subject to DIRT (Deposit Interest Retention Tax). However, cash fund returns are similar to bank deposit rates - very low, especially in low-interest-rate environments. The tax advantage only matters if the fund earns positive returns.
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