UK Pensions
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Focus on your investments
- The Retirement Account is invested with the aim of helping it to grow.
- There is a default investment strategy, so you don’t have to choose how your Retirement Account is invested.
- If you would rather choose your own investments, you can pick from a range of options.
- The investment structure is designed to give you the support you need when choosing your investments.
- More information is provided in the Investment Guide.
Choosing your investments
How you invest your Retirement Account can have a significant effect on the value of the benefits you receive when you retire. This website will help you make important choices about your investments, but you should also read the Investment Guide before making your decision.
How comfortable are you with making your own investment decisions?
Not at all
Default fund
If you would rather not make any investment decisions yourself, the default option may be appropriate for you. As this is the default option, if you make no other choices, this is where your retirement account will be invested.
I'm confident
Self select funds
If you have a good understanding of investments and are happy to choose your own investment mix, the Self Select option maybe appropriate for you.
More Detail
Default Fund
Under the default option, the Trustee sets the investment strategy so you do not have to make any investment decisions. It is known as a ‘lifestyle strategy’. Your Retirement Account is invested in growth funds while you are a long way from retirement. These funds aim to maximise the value of your Retirement Account without excessive risk. As you approach retirement your Retirement Account is gradually moved into protection funds. These involve less investment risk and aim to safeguard the value of your Retirement Account from falls in value.
With the default option you just need to make sure you let the Pensions Team know at what age you would like to retire (your target retirement age). The automatic switches into protection funds (which take place over 8 years before your target retirement age) will then happen at the right time. If over time your plans change, you can choose a different target retirement age via the form available on the online Pensions portal. If you do not select your target retirement age, your funds will be invested assuming a target retirement age of 65. The default option might be appropriate if you would prefer to use a pre-selected investment mix rather than choosing your own investment strategy.
Self Select Funds
Under the self-select option, you can select any mix of investment funds to suit you. There are a number of different funds offering a range of investment types. This gives you the option of selecting one or a mixture of funds in which to invest, and might be appropriate for you if you are confident in managing your own investments.
Your Retirement Account will remain invested according to your choices until you change them. Unlike the default option, there is no automatic switching as you approach retirement so you should make sure you regularly review whether your investment options remain suitable for your circumstances.
Factsheet for all of the funds available can be found here.
You should think about your attitude to risk before making your choice.
Changing investment choices
You may change your investment choice as often as you wish free of any administration charge. Changes in investment selection are carried out via the pensions portal or by completing the investment change forms which can be found in the Pensions Portal.
Investment risk
You should think about your attitude to risk before choosing your investment funds. Risk in this case means the possibility that your investments may go down as well as up in value. If you are some years from retirement you may be happy to accept a relatively high level of risk in order to maximise growth.
On the other hand you may wish to reduce the level of risk as you approach retirement, to protect the value of your Retirement Account. You can find out more about risk in the Investment Guide.
