Editorial: Find someone who's turning

He said: “We take the view choice is a snare for many people.” It makes people nervous, and adds layers of complexity and cost, he held.

I posed the obvious question at the time: if Nest started to get a substantial level of take-up of its own sharia investment strategy, wouldn’t Now be a step behind?

Though it is still early days in terms of auto-enrolment, that scenario has not (yet) arisen. Only 1 per cent of Nest’s members have taken up the strategy.

And yet Now has come around on the usefulness of sharia investment. The scheme has decided the burden and cost of choice is outweighed by the importance of inclusion.

Earlier this year, we reported on the Islamic Bank of Britain’s conclusions that 66 per cent of its staff had stayed away from workplace pensions because of the lack of a sharia investment option.

More choice is welcome, especially if it encourages engagement. Now should be commended for a brave change of stance.

Industry bodythe Society of Pension Consultants is hoping for a similar reconsideration from the pensions minister on the speedy implementation of pot-follows-member pension consolidation.

Those in the public or industry eye are sensitive about being seen to change their mind, perhaps due to not wanting to be seen as being led by others, or vacillating in their decisions. This is unfortunate if it pushes against a positive change of direction.

As for Islamic investment, hopefully greater take-up will improve the range of products available to members.

Anyone who has had the pleasure of studying modern Islamic thought will know it is far from monolithic. Nor is the concept of ‘Islamic finance’ itself unanimously accepted.

I would go so far as to say this is an area where greater choice of religious investment strategies would justify the cost in scheme members’ eyes.

Ian Smith is editor of Pensions Week. You can follow him on Twitter @iankmsmith and the team @pensionsweek