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Lifestyle strategies

Lifestyle strategies share a common objective. They aim to build pension savings when you still have a long way to go until you retire, and reduce risk of a fall in value as you near retirement.

With a lifestyle strategy, your investment switches are managed for you. In the final 10 years as you approach your Target Retirement Age (TRA), they automatically and gradually move your money from a higher-risk fund (the Long Term Growth Fund) into funds in a way which aims to support how you plan to use your pension pot when you retire (the Corporate Bond Fund and UK Government Fixed Interest Bond Fund).

If you haven’t chosen any investment options, you will automatically be invested in a Lifestlyle strategy by default.

If you are invested in a Lifestyle strategy, you should think about checking and/or changing your Target Retirement Age (TRA) so that the Lifestyle strategy moves your money from higher to lower-risk funds at the right time for your retirement plans.


Target Retirement Age 

You can take your benefits at your section's Normal Retirement Age, or you may want to take them either earlier or later. If this is the case, think about choosing your Target Retirement Age (TRA). Log in or register for myFund to update your TRA. 

As you get nearer to your TRA, your investments in the Lifestyle strategy will automatically start moving from 'higher growth' riskier funds to more 'stable' lower risk funds.

 

Lifestyle strategies available to you

Check out the Lifestyle strategies below to see how they work - you don't have to choose one at this stage.

  • Target Annuity - As you approach your TRA, your money is moved into funds which aim to maintain enough growth to protect the value of the annuity income you may wish to buy with your pension savings.
  • Target Flexible Drawdown  - A greater proportion of your money is left invested in higher-risk funds when you reach your TRA. This means the money that you keep invested has the chance to keep growing and potentially last you longer in retirement.
  • Target Lump Sum  - Most of your money is moved into funds with the aim of maintaining the value of your pension pot so it keeps pace with inflation.

 

Things to consider when choosing where to invest...

  • You may want to take independent advice before making decisions about your financial future. You can find a list of regulated advisers in your area at unbiased. You can find more information on the getting help and advice page.
  • Investment values may go down as well as up, and past performance shouldn't be used as a benchmark for future returns.
  • One of the best and easiest ways to manage your pension arrangements and your investments is to log into your myFund account. You can then check and change your fund choices at any time by going to ‘My Pension’ and the ‘My AVCs’ page.