Aegon LifePath funds are designed to make pension investing simpler. They manage your investments for you and gradually change how your money is invested as you get closer to retirement. This means you do not need to choose and manage individual investments yourself.
How Aegon LifePath funds work
Aegon LifePath funds are target date funds. This means the mix of investments changes automatically as you move through your working life and closer to your target retirement age.
The funds manage long-term environmental, social and governance (ESG) risks and opportunities with the use of exclusionary screening (reducing exposure to certain investments) and tilts (favouring companies with stronger ESG credentials) where possible. Learn more about our approach to Responsible Investing.
There are three key stages:
Growth stage
Your pension is fully invested in growth-focused investments, including equities (company shares) and private markets (private businesses or projects). These aim to help your savings grow over the long term.
Approaching retirement
15 years before your target retirement age, the fund starts to move your savings into other investments, which may include bonds, protected equities and, from 2027, multi-asset credit. This is to help manage risk and to prepare your savings for when you take a retirement income.
At retirement
The investment mix at your target retirement age will differ depending on which Aegon LifePath fund you are invested in. This determines whether it will align with the option to drawdown, purchase an annuity or take all of your savings in cash.
The value of investments may go down as well as up and you may get back less than you invested. Please see fund factsheets for full details, including fund-specific risks. If you're unsure about how to invest, please speak to a financial adviser.
Compare Aegon LifePath funds
There are three Aegon LifePath funds, each follows the same overall approach in the growth stage. The main difference is how the fund prepares your pension savings as you get closer to retirement.
| If, at retirement, you plan to... | Option |
| Keep your pension invested through retirement and take money when you need it (drawdown) | Aegon LifePath Flexi |
| Use your pension savings to buy a guaranteed income (annuity) | Aegon LifePath Retirement |
| Take your pension savings as a cash lump sum (cash) | Aegon Lifepath Capital |
Not sure how you’ll take your pension?
You don’t need to have all the answers now. You can review your options as your plans become clearer.
Changes we're making between 2026 and 2030
We’re making some changes to the investment mix for Aegon LifePath funds. These changes are designed to give your pension more opportunities to grow and to spread your savings across a wider range of investments to help manage market ups and downs better. From 2026 to 2030, we'll gradually increase investment in private markets and protected equities and introduce a new type of investment, multi-asset credit.
Read more about what’s changing and what it means in our fund update.
Aegon LifePath Flexi
- Designed for keeping your pension invested after you've reached target retirement age and taking money when you need it.
- At retirement your savings stay invested in a broad mix of investments to support continued growth through retirement.
Need to know: If you stay invested in retirement, your savings can continue to grow, but could also fall in value. There’s a risk your money could run out too soon.
This chart shows how Aegon LifePath Flexi invests at different stages of the retirement journey:
Aegon LifePath Retirement
- Designed for exchanging your savings for a guaranteed income for life or a set period by buying an annuity when you retire.
- At retirement your savings will be invested 75% fixed income and 25% cash (to cater for your tax-free cash allowance).
Need to know: With annuity, your income is certain but may be lower than drawdown. You can't typically leave behind your remaining pot. The investment mix at retirement isn't designed for long-term investing and the fund may lose value against inflation if you keep your savings invested.
This chart shows how Aegon LifePath Retirement invests at different stages of the retirement journey:
Aegon LifePath Capital
- Designed for taking all of your savings as cash at retirement.
- At retirement your savings will be invested 100% cash until you take it.
Need to know: If you take your pension savings as cash, up to 25% is usually tax-free. Any amount above this is subject to income tax. This information is based on our understanding of current taxation law and HMRC practice, which may change. The investment mix at retirement isn't designed for long-term investing and the fund may lose value against inflation if you keep your savings invested.
This chart shows how Aegon LifePath Capital invests at different stages of the retirement journey:
