Fund choice

A workplace savings scheme with Aegon can provide your members with all the investment choice they need – both to build their retirement savings and to help generate a long-term income in retirement.

We provide a full range of default, lifestyling and member-select fund choices spanning the risk-reward spectrum.

The value of an investment can fall as well as rise and isn't guaranteed. The final value of a member's pension pot when they come to take benefits may be less than has been paid in. There's no guarantee that funds will meet their objectives. Please see the fund factsheets for full details of where the funds invest and fund-specific risks. 

Default option

For members who don’t want to make an investment choice, we provide a default option, LifePath Flexi, managed by BlackRock.

LifePath Flexi is a diversified lifestyling fund that aims to provide members with investment growth potential during their working life then gradually reduces risk as retirement approaches. It assumes that the member will want to move to income drawdown on retirement.

LifePath Flexi begins with over 80% in equities, then glides towards an asset allocation of approximately 40% global equities and 60% fixed income by the member’s target retirement date, and that allocation is maintained into retirement. The majority of LifePath's equity exposure is invested in funds with an environmental, social and governance (ESG) mandate.

Lifestyling

We provide three lifestyling options, all managed by BlackRock, which employers can choose as their scheme default. Members can also choose from these options as an alternative to the default fund chosen by their employer.

Each LifePath strategy manages a member’s investment for them by automatically altering how their money is invested as they approach their chosen retirement date. They all aim to provide the member with an opportunity to grow their savings over their working life, whilst managing risk as they get close to retirement.

LifePath Flexi

For those planning to leave their savings invested in retirement and draw down income from them.

LifePath Retirement

For those planning to buy an annuity at their target retirement age.

LifePath Capital

For those planning to take their retirement savings as a cash lump sum at their target retirement age.

Responsible investment in LifePath

The LifePath lifestyling options all include ESG focussed equity strategies as standard – with around 75% invested in ESG-focussed investments for younger members, reducing as retirement nears and the allocation to equities declines. For example, the ESG allocation for LifePath Flexi at retirement is around 30%1.

BlackRock is a member of the Net Zero Asset Managers Initiative and is committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner2. This is closely aligned to Aegon's commitment to achieving net zero carbon emissions across its default strategies by 2050.

As set out in BlackRock's Stewardship Expectations, engagement is core to BlackRock's stewardship efforts. By engaging with companies on a range of ESG issues, BlackRock advocates for sound corporate governance and sustainable business models that can help support long-term financial returns. This includes seeking to understand how companies are managing ESG risks and opportunities.

Read more about BlackRock's stewardship.

Self-select fund choices

If you wish to allow your members to create their own investment strategy, we can provide a wide range of funds managed by a selection of leading and specialist fund managers.

Funds available span:

  • all major asset classes (e.g.  equities, bonds, property, multi-asset, sector-specialist and money market);
  • a choice of ESG funds and a Shariah compliant option
  • all geographic markets (e.g. UK, overseas, global and emerging markets), and
  • both actively managed and passive index-tracking strategies.
See the full TargetPlan fund range here

1Weightings as at 19 July 2021. The figures are based on current assumptions on LifePath UK assets under management of around £8.5 billion. For illustrative purposes only. Subject to change. Actual allocations and implementation may change.

2BlackRock Investment Stewardship commentary, February 2021, Climate risk and the transition to a low-carbon economy BlackRock's global aspiration is reflective of aggregated efforts; companies in developed and emerging markets are not equally equipped to transition their business and reduce emissions at the same rate. Those in developed markets with the largest market capitalization are better positioned to adapt their business models at an accelerated pace. Government policy and regional targets may be reflective of these realities.