Pros and cons of lifestyle funds

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You can switch out of an Aegon lifestyle fund and into another fund or funds of your choice any time you want.

To help you decide whether transferring out of your lifestyle fund might be right for you, we've listed below some of the key things to consider.


Advantages and disadvantages of choosing an alternative to a lifestyle fund


  • Truly tailored - You or your adviser can design a solution that is tailored to your needs. Often lifestyle funds are chosen by employers to suit the majority of their employees’ retirement needs, rather than for specific individuals.
  • Greater control - If you’re actively managing your investments up to and in retirement, you can adjust your investments to adapt to changing personal circumstances or even changes in stock market conditions. This is something you can’t do within a particular lifestyle strategy (although you can switch out of your lifestyle fund at any time).
  • More choice - Apart from some of our products like Retiready*, there’s generally a bigger choice of funds or investment options to choose from allowing you to invest in a whole host of different types of investment.

  • No automatic lifestyle process - Lifestyle funds have an in-built automated process that can take a lot of the worry of preparing for retirement away from pension scheme members. If you don’t choose another lifestyle fund like your scheme default, it won’t automatically change to prepare your savings for retirement like lifestyle funds do. This means you’ll have to make sure that your fund is invested prudently all the way up to retirement or for as long as you’re invested. If you don’t have an adviser this can be a big responsibility.
  • Fund charges – generally default funds and lifestyle funds are relatively low cost, especially compared with actively managed funds, although this isn’t always the case.
  • Restricted choice – most of our pension products offer a wide choice of funds to choose from. However, some of our products don’t. For example, there are no lifestyle funds available on our Retiready and Aegon One Retirement (AOR) products.

Once you know which fund or funds you want to switch into you can find out how to switch funds(Opens new window)(Opens new window) on our website. 

*Please note: if you have a Retiready or Aegon One Retirement (AOR) account, you can switch out of your current lifestyle fund but you won’t be able to switch into another lifestyle fund.

Retiready planholders have a choice of five funds to invest in. Log in to your Retiready account(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window) to find out more.

AOR planholders can choose from a range of around 100 funds. Log in to your AOR account(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window)(Opens new window) to find out more.