How does the Growth Tracker (Cash Target) fund change as I near retirement?

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The Growth Tracker (Cash Target) fund is a type of Retirement Target fund that’s designed for savers who don’t make active fund choices and know they’ll cash in their pension savings when they retire.

Who is it for?

The fund is designed for savers who know they want to cash in their pension savings when they retire. For example, it might suit those who plan to use other savings to create their retirement income.


Please remember that if you cash in your savings all at once, 25% of those savings will be tax free, but the remainder will be taxed as income(Opens new window)(Opens new window) and might  put you into a higher tax bracket. 

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.

This fund is designed for savers who plan to cash in their savings on retirement. If you don’t plan to do this, or don’t yet know how you’ll take a retirement income, it might not be right for you.


You might also want to find out about our Flexible Target funds, designed for those want to keep their options open.


The value of investments may go down as well as up, you may get back less than you originally invested. We review this fund regularly and may change it if we believe it’s in the best interests of investors.

Speak to a financial adviser to find out more

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.