What is a default fund?
When you join your pension scheme, your contributions are automatically invested into a default fund chosen by your employer. The fund is managed for you and automatically changes as you get closer to retirement, aiming to grow your savings early on and gradually reducing risk over time to prepare for when you need to take a retirement income.
Default funds are designed for those who prefer a hands-off approach to saving for retirement. However, they don’t consider your personal circumstances or specific retirement plans, so it’s important to ensure your investment strategy aligns with your financial goals and how you plan to take a retirement income.
For Aegon Master Trust, the default fund is Aegon LifePath Flexi. The trustees have selected this fund as they believe it meets the needs of most members. However, you can choose from a range of other funds if you'd prefer to build your own investment strategy.
Alternative options
If you don't think that the default chosen for you is right for you, you can choose your own investments. Aegon Master Trust offers a range of other funds to choose from which invest in different types asset classes, regions and those with responsible investment or sharia objectives.
The value of an investment can fall as well as rise and isn't guaranteed. The final value of your pension pot when you come to take benefits may be less than has been paid in. If you're in any doubt about which fund's right for you, you should speak to a financial adviser. There may be a charge for this.
See where you're pension is invested
Log in to TargetPlan and select View and manage to view your investments, research or switch funds or update your target retirement age. Reviewing your pension regularly can help keep it aligned with your retirement plans.
