Our Retirement Target funds (also known as lifestyle funds) are designed to match how you plan to use your savings when you retire.
You can choose a target based on your goals:
- Flexible Target - if you want to keep your options open about how and when you take your retirement income
- Annuity Target - if know you will buy an annuity (which offers a guaranteed retirement income for life), when you retire
- Cash Target - if you know you want to take your savings as a lump sum
The fund then automatically adjusts your investments over time, becoming more focused on your chosen outcome as you approach retirement.
There are two main stages
Growth - when you're still some way from retirement
At this stage, these funds invest in a mix of assets aimed at growing your pension pot over time. This mix is regularly checked and adjusted for you.
You can choose a fund that matches your savings goals and how much risk you're comfortable taking.
Retirement target - when you're approaching retirement
This stage happens in the final years before retirement. During this time, your fund is automatically moved into a mix of investments designed to get you ready for how you plan to take your money.
These changes are based on the retirement target you’ve chosen, whether that’s a Flexible Target, an Annuity Target or a Cash Target. It's important that your fund matches your plans, otherwise it may make changes that aren't appropriate for you.
Fund monitoring
All our Retirement Target funds are managed by experts, and are monitored by our Fund Governance team, who check if they're meeting our Funds Promise commitments.
This monitoring is designed to help us achieve our aim of offering high quality funds which meet your expectations.
The value of investments in the growth and retirement target stages can fall as well as rise and isn't guaranteed. The value of your pension pot when you come to take benefits may be less than has been paid in.
Find out more about retirement target stage:
We review our Retirement Target funds regularly and may change them if we believe it's in the best interests of investors.
The choice is yours
Your choice of fund can have a big effect on your savings. If you're in any doubt about which fund's right for you, you should speak to a financial adviser.
If you don’t have a financial adviser, you can find one in your area by visiting MoneyHelper, or find out about Origen Financial Services, the advice service supported by Aegon. Origen Financial Services Ltd is wholly owned by Aegon UK plc but operates independently to us.