The Growth Tracker (Cash Target) fund is designed for pension scheme members who intend to cash-in their pension savings when they retire.

There are two main stages in this fund: Growth and Retirement Target



When savers are still some way from retirement.

In the early years, it aims to grow long-term savings by investing mainly in UK and international equities (company shares) with the remainder in bonds (corporate and/or government bonds) and/or cash.

It’s designed to track the markets it invests in, so performance should be similar to those markets, but there's no guarantee and its value can fall as well as rise. This means the final value of your pension pot when you come to take benefits may be less than has been paid in.


Retirement target

When savers are approaching retirement

In the six years before your target retirement year, we’ll automatically prepare your savings for when you cash them in on retirement.

We’ll gradually start to move you into investments that are generally considered to be less risky.

Then, in the last three years, we’ll move your savings into cash so you can take your benefits and spend them any way you like.

When you retire, your fund will be 100% invested in cash, and will remain in cash until you tell us what you want to do with your pension savings. Cash isn't suitable for long-term investing as inflation can reduce the spending power of your savings, meaning you can buy less.

If you choose to cash in your benefits all at once, you can normally take 25% of your pension pot as tax-free cash. The remainder will be subject to income tax at your marginal rate. This is based on our understanding of current taxation law and HMRC practice, which may change.

An example

Here's an example of how the fund changes in the years before you retire:

Example growth chart

The risk levels shown are Aegon's and shouldn't be compared to other providers' risk ratings. We review our funds regularly and may change them if we believe it's in the best interests of investors.

The choice is yours

This fund is designed for use by workplace pension schemes. If your employer selects it as your scheme's default fund, you'll automatically be invested into it when you join your workplace pension scheme. This means you're invested from day one.

Your employer may have chosen it because they think most members plan to cash-in their savings on retirement. However, it may not be the best fit for you.

If you want more control over where your money is invested, you can select a fund that’s more tailored to your needs. For example, you may want to ensure you are investing responsibly. If that is something you are interested in, see our responsible investment range. Alternatively, you may also want to consider our other investment options.

Your choice of investment fund can have a big effect on your pension benefits. If you're in any doubt about which fund's right for you, you should speak to a professional financial adviser. MoneyHelper gives free and impartial guidance to help make your money and pension choices clearer. If you don't have a financial adviser, you can visit MoneyHelper to find the right one for you. There may be a charge for this. 

Your Retirement Planner

You have lots of choice about how to access your retirement savings. We're here to help. Our website, Your Retirement Planner, has information and tools to help you understand your options when you get close to retirement.