Over 95% of people in defined-contribution (DC) pension schemes will remain in their scheme default fund.1 So, we make sure we provide a robust default strategy appropriate to scheme members, that changes automatically as they move closer to retirement. That’s why we selected BlackRock’s LifePath strategies as the default options for TargetPlan, and why we work closely with BlackRock to ensure they meet you and your members’ needs. Alternatively, you and your adviser can build a default fund bespoke to your scheme's needs.
Scheme members who want to build an investment portfolio that's tailored to their specific needs, can choose from nearly 200 funds, covering all major asset classes (as at December 2023). And you can set up a shortlist of core funds for those who want to make a more guided choice.
The value of investments isn't guaranteed and may go down as well as up. Scheme members may get back less than they invest.
Investment options for scheme members
Do it for me
Those who don't choose a fund will automatically be invested into the default fund you select for your scheme. Use our LifePath strategies, or build your own default fund with your scheme adviser.
Guide me
Build a shortlist of funds from our full range, to help make choosing funds easier for scheme members.
Leave it with me
For scheme members who have the time and experience to build their own investment portfolios, we have nearly 200 funds2 to choose from, covering all major asset classes.
Our scheme default - the LifePath investment strategy
LifePath is a target-dated investment strategy that automatically manages a member’s savings from their early working life, right through to retirement. It aims to make sure they’ve invested appropriately at all stages of their working life, to help deliver the retirement outcome they’re targeting. The investment mix in the fund changes gradually and automatically over time, ensuring there's a process in place to accommodate scheme members' changing investment needs.
TargetPlan offers three options for your members to take their savings at retirement:
LifePath Flexi (our recommended default) - for those intending to stay invested and perhaps take an income from their retirement savings.
LifePath Retirement - for those planning to buy an annuity (guaranteed pesion) at retirement.
LifePath Capital - for those planning to take their retirement savings as a cash lump sum.
Investing responsibly is important, both to growing members savings, and to protecting the world we live in. That's why our LifePath strategies consider environmental, social and governance factors as part of their investment process.
Supporting your scheme
We help scheme members understand their investment options. From investment information when they first join the scheme, to ongoing support and prompts to review their investment strategy as retirement approaches.
Schemes are provided with a bespoke investment options brochure, and support from our team in explaining investment options to members. The can also access educational information about investing on our website and when they log in to their account.
In addition, scheme engagement campaign materials are available to you to help prompt your members to think about which investments might be right for them.
1 The Pensions Regulator. DC trust: scheme return data 2022 – 2023
2 As at December 2023.
Find out more about TargetPlan's investment options
To find out more about TargetPlan's investment options please speak to your usual Aegon contact.
