A robust default investment strategy
Over 90% of those in defined-contribution (DC) pension schemes will remain in their scheme default fund.¹ So, our primary goal is to provide a high-quality default strategy appropriate for scheme members.
That’s why we selected LifePath strategies as the default options for TargetPlan.
Aegon LifePath Flexi offers members a retirement solution that is built around their changing needs. It's a target dated investment strategy that automatically manages a member's savings from their early working life, right through to retirement.
The asset mix is adjusted over time, starting with a focus on growth whilst members are young and gradually moving to assets that help to protect their wealth as they are near and in retirement.
LifePath Flexi incorporates environmental, social and governance (ESG) considerations. As at December 2023, over 90% of assets in the early years and over 40% in the retirement stage incorporate ESG screens.
LifePath Flexi also benefits from a triple layer of governance from Aegon and the investment sub-committee, supported by investment adviser Isio.
Alternative Aegon LifePath options
In addition to Aegon LifePath Flexi, the range includes two other LifePath strategies. Aegon LifePath Retirement, designed for members targeting an annuity purchase, and Aegon LifePath Capital, designed for those looking to cash in their pension.
This provides alternatives for members who like the idea of a fund that will manage their investments throughout their career, right up to retirement, but would like the option to take their benefits in a different way.
Supporting your client’s scheme
Whether your client decides to use our chosen default, the Aegon Lifepaths Flexi fund, or use their own, we’ll support their scheme by providing bespoke investment options brochures and online services to help members make their own choices.
Your client can select a core fund range to help narrow the choice for their members, or they can simply give them access to the full self-select range of over 190 funds (as at December 2023).
Do it for me
Aegon LifePath Flexi is our chosen default, but clients can choose their own.
Guide me
Select a core fund range tailored to members’ needs.
Leave it with me
We offer a wide range of single and multi-asset funds, as well as a selection of responsible investment options.
There’s no guarantee the LifePath funds will meet their objectives.
The value of investments and any income taken, can fall as well as rise and isn’t guaranteed. The final value of a member’s pension pot when they come to take benefits may be less than has been paid in.
LifePath's responsible investment credentials
Over recent years, we've moved assets in the LifePath default strategies into funds incorporating environmental, social and governance (ESG) screens.
As at December 2023, 92% of assets in the early years and around 44% in the retirement stage of LifePath Flexi have been moved into funds incorporating ESG screens.
We plan to increase these levels over the coming months and years, in line with the LifePath climate objective to target an absolute reduction of 50% in carbon emissions intensity by sales, over the 10-year period between June 2019 to June 2029. Significant progress has already been made towards this target with a 37% reduction in the carbon footprint of LifePath since 20202.