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 BlackRock’s LifePath strategies as the default options for TargetPlan, and why we work closely with BlackRock to ensure it meets your client’s needs.

Aegon BlackRock 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, BlackRock and the investment sub-committee, supported by investment adviser Isio.

Alternative Aegon LifePath options 

In addition to Aegon BlackRock LifePath Flexi, the range includes two other LifePath strategies. Aegon BlackRock LifePath Retirement, designed for members targeting an annuity purchase, and Aegon BlackRock 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 BlackRock 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).

Female professional speaking at meeting

Do it for me

Aegon BlackRock LifePath Flexi is our chosen default, but clients can choose their own.

male and female coworker are meeting at a desk and reviewing their work on a tablet in a modern office

Guide me

Select a core fund range tailored to members’ needs.

 

casually dressed man in a modern office is smiling and drinking coffee while looking at his phone

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 worked closely with BlackRock to move 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

LifePath’s credentials

Why BlackRock? 

BlackRock is one of the world's leading asset managers, providing investment solutions to institutions and financial professionals3.  With over 19,000 employees, operating across 70 offices in over 30 countries around the world4 BlackRock is focused on investing for the future and improving financial wellbeing for the people they serve, while also seeking to contribute to a more equitable and resilient world. 

Investment stewardship is one of the ways in which BlackRock fulfills its fiduciary responsibilities as an asset manager. BlackRock Investment Stewardship serves as a link between those clients and the companies they invest in. The sole focus of BlackRock's dedicated stewardship team when they engage with companies or vote at shareholder meetings is to advance the financial interests of BlackRock's clients.

1Source: The Pensions Regulator.  DC Trust Scheme Return Data 2022-2023. Based on 26,990 schemes as at 31 December 2022.

2Source: BlackRock as at 31 December 2023. Scope 1 and 2 carbon footprint calculated as tCO2e/£m invested using Enterprise Value Including Cash (EVIC) for listed equity and corporate fixed income only. Average reduction in carbon footprint across all LifePath versions and stages of investment. 

3Source: Business Insider 2024.

4Source: BlackRock, 31 December 2023