Fund choice

For financial advisers only

LifePath – a simpler, flexible approach to retirement saving

TargetPlan aims to ensure that every member has access to an optimal investment strategy to help grow their retirement pot, whatever their lifestage and retirement goals.

To achieve this, TargetPlan incorporates the LifePath investment range, managed by BlackRock. LifePath is a range of target date funds that take full account of when a member plans to retire and how they wish to access their pension savings. The range includes environmental, social and governance (ESG) strategies, which are integrated as standard.

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 the LifePath strategies will meet their objectives. Please see the fund factsheets for full details of where the funds invest and fund-specific risks.

LifePath offers three lifestyling options: 

LifePath Flexi

For members planning to leave their savings invested in retirement and drawdown income from them.

LifePath Retirement

For members planning to secure a guaranteed retirement income using an annuity.

LifePath Capital

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

During the early years, capital is invested in the same growth assets, regardless of which LifePath option is selected. Each LifePath fund is then structured to adapt to the member’s chosen retirement date and plans, balancing the need for capital growth with an emphasis on controlling investment risk at each stage of the retirement journey. 

LifePath uses a longer glide path than many other target date funds. De-risking starts 35 years from retirement and then accelerates when the member has ten years left until they wish to retire.

LifePath's ESG credentials

The LifePath lifestyling options all include ESG-focussed strategies as standard and these amount to around 75% for younger members. This is achieved through the global equity weightings, so reduces as members get close to retirement. For LifePath Flexi members, the weighting will be around 30% at retirement.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 range 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.

Other fund choices

In addition to LifePath, TargetPlan offers 120 insured funds from BlackRock and other external managers covering a mix of active and passive strategies with access to all major asset classes and geographic regions, including a selection of ESG funds and a Shariah compliant option. These include a Governed fund list specifically selected for inclusion in the Aegon Master Trust.

If your corporate clients have a specific fund need, or require a blended investment solution, we are happy to see how we can accommodate their requirements within TargetPlan.

Whatever your client’s investment choice, our client team will provide regular updates and reporting to ensure both employers and members are kept up-to-date with the investments in their scheme.

See the full Target Plan fund range See the full Target Plan fund range

 

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.