What is a default fund?

A default fund is the fund that an employer or scheme trustee has chosen for scheme members who don't make an active fund choice. Any members who don't choose a fund will be automatically put into this fund. It's usually a lifestyle fund, which means it manages scheme members' investments right up to retirement by automatically switching from investments that aim to grow their pension savings to investments that aim to prepare them for a particular retirement outcome, for example drawing down income or buying an annuity.

Your employer has chosen a default fund that they believe can suit 'most' members of a scheme but it may not suit your particular circumstances. 

If you're in any doubt about whether a particular fund is suitable for you, you may want to talk to an authorised financial adviser. You can find one near you at www.unbiased.co.uk(Opens new window)

The value of investments can go down as well as up. Investors may get back less than the amount invested.