Fund update Changes to Aegon LifePath funds

These changes only affect you if you're invested in an Aegon LifePath fund or are thinking about investing. Aegon LifePath funds are available to customers in our TargetPlan and Aegon Master Trust pension products.

Key points

We’re making some changes to Aegon LifePath funds. These are designed to give your pension more opportunities to grow and to spread your savings across a wider range of investments, to help handle market ups and downs better.

• We're adding new investment types including private markets, protected equities and multi‑asset credit and removing listed property and commodities.
• The changes begin in summer 2026 and will be introduced gradually through to 2030.
• In 2026, you don’t need to do anything. The changes will happen automatically.
• Between 2027 and 2030, we expect there to be changes to the fund objectives, risk levels and charges for some investors.
• We’ll contact you well in advance to explain what’s happening and what options are available if you are affected.

Who this applies to

These changes apply to investors in Aegon LifePath Flexi, Aegon LifePath Retirement and Aegon LifePath Capital. With the exception of investors in Aegon LifePath Retirement or Aegon LifePath Capital funds who have reached their target retirement age.

Not sure what fund you are invested in? Log in to your TargetPlan dashboard aegon.co.uk/targetplan to find out.

What’s changing

We’re gradually changing the mix of investments for Aegon LifePath funds. From summer 2026, we’ll begin adding three new types of investment:

• Private markets: Investments made directly into businesses or projects (like private companies, loans, infrastructure, forestry or property) that aren't bought or sold on public markets.
• Multi-asset credit: A mix of different types of bonds, to help spread risk more broadly.
• Protected equities: Investments in company shares (equities), with financial instruments used to help reduce the impact of market ups and downs.

At the same time, the Aegon LifePath funds will stop investing in listed property and commodities. However, the evolved investment mix significantly broadens the range of investments, providing greater diversification. The funds will continue to have exposure to property in private markets.

Why we’re making these changes

• To give your pension more opportunities to grow. 
  Adding private markets means the funds can invest in businesses that aren’t listed on the stock market, such as infrastructure, renewable energy and growing companies. This gives your pension access to a broader range of long‑term growth opportunities.
• To make your pension more resilient by spreading risk more effectively.
  By investing across a wider mix of investment types, the fund doesn’t rely as heavily on any single market or asset. This means if one area performs poorly, others may help to balance this out. Spreading investments in this way (diversification) aims to smooth returns over time and help your pension cope better with market ups and downs.

What this means now

In 2026, we’ll begin moving a small part of your savings into the new investment mix. Because only a small part will move at first, there will be no change to the fund’s objective, risk level or charges at this stage, so you don’t have to do anything.

What this will mean later

From 2027 onwards, as more of your savings are moved into the new investment mix, the objective, risk level and charges in Aegon LifePath funds are expected to change for some investors. The impact of these changes will depend on which Aegon LifePath fund you’re invested in and how close you are to your target retirement age.

We’ll contact you directly before there are any material changes, to explain what this means and the options available.

There’s no guarantee the funds will meet their objectives. The value of your investments can go down as well as up, and your pension pot could be worth less than has been paid in.

Important information about private markets

Private markets are investments that aren’t listed or traded publicly (they aren’t bought and sold in public markets). They are ‘illiquid’ investments. This means they may take longer to sell than traditional investments or sell for less than they are worth. Private market assets are considered long-term investments of at least five years.

The private markets investments in these funds will be housed within three Long-Term Asset Fund (LTAF) structures. An LTAF is a type of open-ended pooled fund, authorised and regulated by the Financial Conduct Authority (FCA). It is designed to hold long‑term investments that can take more time to buy or sell.

Help and support

Further reading on how the investment mix is expected to change over time.

How the investment mix will change

Aegon LifePath funds automatically and gradually adjust how they invest as you get closer to retirement. Where the fund is invested depends on your retirement target (flexible income, cash, annuity) and how far you are from your target retirement age.