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Cash & Cash Equivalents category icon

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 tracked
10
Providers
+1.3%
Avg. 1yr

Risk Rating 1 (lowest risk category)
Returns similar to bank deposit rates
Will not keep pace with inflation long-term
Ideal for protecting tax-free lump sum near retirement

Select funds below to compare performance over time

Provider
All providers
Standard Life (4)
Irish Life (3)
Royal London (1)
Aviva (1)
BOI Life (1)
New Ireland (1)
Acorn Life (1)
Zurich Life (1)
Mercer Aspire (1)
AIB Life (1)
FundRiskProviderSubcategory1Y5Y10Y
Royal London BlackRock Euro Environmentally Aware Cash Fund
1
Royal LondonMoney Market

+2.08%

+10.19%

-

AIB Life Cash Fund
1
AIB LifeMoney Market

+2.04%

-

-

Mercer Aspire Cash Portfolio
1
Mercer AspireMoney Market

+2.01%

+9.79%

+7.14%

Acorn Life DepositAcorn LifeMoney Market

+1.70%

+7.98%

+3.67%

Zurich Life Cash
1
Zurich LifeMoney Market

+1.57%

+6.87%

+2.46%

Standard Life MW Euro Global Liquidity
2
Standard LifeMoney Market

+1.36%

+6.23%

+0.10%

New Ireland Cash
1
New IrelandMoney Market

+1.31%

+6.23%

+0.35%

Irish Life Global Cash Fund
1
Irish LifeMoney Market

+1.13%

+4.79%

-

Irish Life Cash
1
Irish LifeMoney Market

+1.13%

+6.62%

+6.62%

Aviva Cash Fund
1
AvivaMoney Market

+1.10%

+5.12%

-1.85%

Standard Life Euro Global Liquidity
2
Standard LifeMoney Market

+1.08%

+4.83%

-2.40%

Bank of Ireland Life Cash
1
BOI LifeMoney Market

+1.06%

+4.78%

-2.53%

Standard Life Cash Fund
1
Standard LifeMoney Market

+0.93%

+6.60%

+6.60%

Standard Life Prosperity Euro Global Liquidity
2
Standard LifeMoney Market

+0.59%

+2.27%

-7.15%

Irish Life Indexed Cash
1
Irish LifeMoney 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

ProviderFund NameNotes
Acorn LifeDeposit FundBank deposits and short-term instruments
AIB LifeCash FundRisk Rating 1
AvivaCash FundPart of select range
Irish LifeCash Fund100% cash and short-term deposits. Risk Rating 1
Mercer AspireCash PortfolioCash and money market instruments
New IrelandCashLow-risk cash deposits
Royal LondonBlackRock Environmentally Aware Cash FundRisk Rating 1, SFDR Article 8
Standard LifeCash FundPart of the standard range
ZurichCashLow-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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