Aegon Workplace Default fund

For financial advisers only

The Aegon Workplace Default fund is Aegon's main in-house default fund for Workplace Solutions schemes. It's designed for a membership that will largely prefer to remain invested at retirement and take advantage of Pensions Freedoms flexibility.

Introduction for members

This simple video explains how the default fund works for members.

Overview

Aegon’s in-house default is designed as a solution for employers who believe most employees will stay invested at retirement, but may follow differing retirement patterns.

Benefits of Aegon Workplace Default:

  • Single solution to suit a broad range of pension scheme members
  • Governed by Aegon
  • Combination of active asset allocation strategy with passive components to keep costs low
  • Significant allocation to funds with a responsible and sustainable investment focus at both growth and retirement stages
  • Automatically moves into investments generally considered to be lower risk as employees approach their selected retirement age
  • Aims for growth above inflation at retirement, to give members time to consider their retirement options
Portfolio information

There's no guarantee the fund will meet its objectives. The value of an investment may fall as well as rise and investors may get back less than they invested. Please see the fund factsheet for more information and the fund specific risks.

How the Aegon Workplace Default fund works

Growth stage

In the early years the fund invests in a well diversified mix of equities and bonds, designed to provide the average-risk investor with long-term growth potential. To keep costs low, the fund uses passively managed investments which aim to produce returns broadly in line with the markets they track. Supporting our commitment to achieving net zero carbon emissions in our default funds by 2050, and to halving emissions by 2030, 60% of the fund is invested in funds with a responsible and sustainable focus¹.

Pre-retirement stage

As members approach retirement age (currently six years before the start of their retirement year) we start moving them into investments generally considered to be lower risk, ending in a cautious mix that’s designed to keep their options open when they retire. This process happens automatically and gradually over the six year period until they reach their retirement date.

At retirement

When they reach the scheme retirement age, members will be invested in the Aegon Workplace Default Retirement fund, which they'll stay in until they decide what to do with their savings. This invests in a cautious asset mix that aims to provide continued moderate growth so members don't have to decide how to take their benefits immediately.

At this stage, at least 40% will be invested in funds with a responsible and sustainable focus¹.

The fund can go down as well as up in value, at all stages including at retirement. Members could end up with less than they invested and, if they remain invested in retirement, they may run out of money too soon, particularly if they take an income.

Asset allocation figures on pie charts are indicative only and may change. Please see the latest fund factsheets for up-to-date figures.

¹Asset mix expected to be reached in Summer 2022. Target to half emissions based on 2019 start date. 

Governance

The Aegon Workplace Default fund is backed by our Funds Promise. Because it's our main, in-house default fund, our governance committee has an added duty of care to ensure it continues to be fit for purpose. This means:

  • as the retirement market evolves and customer needs change, we change it to meet these needs.
  • we reserve the right to make changes to the asset allocation both in the growth and retirement stages, and to the length of glidepath, to ensure our default fund continues to meet the needs of pension scheme members.

Our Funds Promise

We regularly check insured funds  to see if they're meeting expectations. Find out more.