How does the Growth Tracker (Cash Target) fund work?

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The Growth Tracker (Cash Target) fund is a type of lifestyle fund also known as a retirement target fund.

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

It automatically adapts as you get close to retirement, recognising that your priorities are likely to change.

There are two main stages


When savers are still some way off from retirement.

Retirement target 

When savers are approaching retirement.

Growth stage

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 UK government bonds (around 25%). 

It’s designed to track the markets it invests in, so performance should be similar to those markets.

Retirement target 

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 less risky investments – so you won’t need to weather the full impact if markets get stormy.

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.


Generally, riskier investments have better long-term growth potential, so moving into less risky investments, including cash, can mean your fund misses out on some growth in the final years if the sun does shine on investment markets.

How does the fund change?

The choice is yours

This fund is designed for use by workplace pension schemes. If an employer selects it as their scheme's default fund, members who don't make their own fund selection will be automatically invested into it when they join their workplace pension scheme. This means they'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. 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 new window)


*If you choose to cash in your benefits all at once, you may be liable to income tax on the amount remaining after tax-free cash – currently 75% of your pension pot.

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.