How does it work?
In the final six years before your target retirement date, we automatically prepare your savings for when you take a retirement income. Stock markets can be unpredictable. If the value of your savings falls when you're near retirement this can have a big impact on your pension pot.
To help manage this risk, as retirement approaches, we gradually move your savings into assets generally considered to be less risky - the aim is to cushion you from the worst of the falls if markets drop just before you're due to retire, but there's no guarantee.
We also make sure your fund holds a mix of different assets so you aren’t reliant on the success, or otherwise, of just one asset type.
At the retirement stage, the aim is to allow your savings to continue to grow to support any income you're taking. If the income you take is higher than its growth, the value of your pension pot will fall and you could run out of money too soon.
If you choose to stay invested in retirement, you'll still be exposed to the ups and downs of the market, so your pension pot may fall in value.
Also, moving into lower risk investments can mean you miss out on growth if markets go up.