Make your savings work for you!
It might be a while before you need to use your savings to buy a pension. So, in the meantime your savings will be invested in funds of your choice. You can choose to invest in a lifestyle option, or select your own funds.
Lifestyle - your default option
If you're not confident in making choices about where to invest your savings, you might want to think about the 'lifestyle' option. This is a default investment option which means someone does the planning for you.
With lifestyle, your pension savings are invested for you in specified types of investments depending on when you want to retire. The further you are from retirement, the more risky your investments - but don't forget this can mean bigger rewards. As you approach retirement your investments are automatically moved to lower risk investments.
If you choose the lifestyle investment option contributions paid up to five years before your selected retirement date (SRD) will purchase units in the Managed Fund. Five years (i.e. 60 months) before your SRD we will begin the automatic process of switching your account into the Pre-Retirement Fund.
On a monthly basis a proportion of your assets will switch from the Managed Fund to the Pre-Retirement Fund. The proportion of your investments in the Managed Fund will decrease over the five year switching period and the proportion in the Pre-Retirement Fund will increase.
For example, if you are four years (i.e. 48 months) from retirement 80% of your personal fund will be invested in the Managed Fund and 20% in the Pre-Retirement Fund.
In addition, the value of all future monies received (i.e. from further contributions or transfers in) will be switched on a monthly basis in the same way as your fund.
If you would like to have more control over where your savings are held, you can find out more by clicking on the icons below.
There are eight funds available to members - find out more...
If you want to find out more about investing, you can read The Pensions Regulator's Guide.
