If you don't make an investment choice, your contributions - along with any your employer makes - will be invested in the default fund. This is chosen by your employer or the trustees. This may be one of our LifePath funds, or a Lifestyle fund designed specifically for your scheme.
In the early years, a typical default fund aims for growth and invests in riskier types of investment, like equities (company shares). Then, as you approach your selected retirement date, it gradually and automatically switches from these riskier investments into those generally considered less risky, like corporate or government bonds (also known as fixed interest securities) and cash. The investments it switches into will depend on the retirement outcome it's targeting.
Your employer will have chosen to target one of three outcomes:
- Stay invested and draw an income (known as income drawdown)
- Buy an annuity (for those who want a guaranteed income)
- Cash, which assumes you’ll cash in your savings
They will also have chosen a scheme retirement age. If you'd prefer a different outcome or feel you want to retire at a different age, you may want to select an alternative. See the 'Guide me' section below.
To find out more about your options at retirement, go to Your Retirement Planner.
You can find out more about the default fund for your scheme in your Investment Options or Member booklet. These can be viewed by signing-in to your account then selecting View and manage and clicking on Documents.