How does the Aegon Workplace Default fund work?Wed Apr 18 10:31:00 GST 2018 Back to results
It's designed for pension scheme members who are likely to stay invested at retirement and aims to keep your options open.
It adapts as you get close to retirement, recognising that your priorities are likely to change.
There are two main stages
Growth - When savers are still some way off from retirement.
Retirement target - When savers are approaching retirement.
In this stage, the Aegon Workplace Default fund invests in a mix of investments designed to grow your pension.
This mix is mainly made up of equities (company shares) which have historically provided greater long-term growth than older types of investments, although they are also the riskiest.
Retirement target stage
When you get close to your retirement date (six years before) your fund automatically adapts, recognising that your priorities will change
sHow does it work?
In the final six years before you’ve told us you want to retire, your savings are automatically prepared for when you take a retirement income.
Like the weather, markets can be unpredictable. If your fund falls when you’re near retirement this can have a big impact on your pension savings.
We gradually move you into less risky investments as retirement approaches - so you won’t need to weather the full impact if markets get stormy.
We also make sure your fund holds a mix of different types of investment so you’re not reliant on the success, or otherwise, of just one type.
At retirement your fund will be invested in a cautious mix of investments that aims to provide you with continued growth and allow you to take a modest income.
How does the fund change?
The choice is yours
This fund is designed to meet the needs of the 'average' workplace scheme member. You may prefer to choose a fund that is more tailored to your needs.
If so, please take a look at 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. If you don't already have one, you can find one near you at unbiased.co.uk(Opens new window)
Generally, riskier investments have better long-term growth potential, so moving into less risky investments can mean your fund misses out on some growth in the final years if the sun does shine on investment markets.
The value of investments can fall as well as rise meaning the final value of your pension plan may be less than the amount invested. There's no guarantee that the fund objectives will be met. If you choose to remain invested in retirement, you will still be exposed to the ups and downs of the market so the value of your fund could fall. If you take an income from your retirement fund, there's a chance you could run out of money too soon.
The risk levels shown here are Aegon's and shouldn't be compared to any other providers' risk ratings.
We review our retirement target funds regularly and may change them if we believe it’s in the best interests of investors.
You have lots of choice about how you 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.