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.
How the Aegon Workplace Default fund works
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.
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.
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.