Investment changes to your pension plan

Lifestyle strategies are investment strategies made available to you as part of your workplace pension.  Instead of keeping your money in the same fund, or funds, throughout your working life, the lifestyle strategies gradually move your investments as you get closer to your chosen retirement date, based on guidance from the Committee, the Trustee and their advisers.

There are three lifestyle strategies available to you as part of the Plan which you can choose based on your chosen retirement goals:

• The Cash Lifestyle (the default investment)
• The Drawdown Lifestyle
• The Annuity Lifestyle

For most of the time, the three strategies all invest in the same way. When you are far from retirement, a lifestyle strategy aims for higher growth by investing in assets such as equities. At this stage, people tend to have a higher tolerance to falls in value, as there is more time to recover. As you move closer towards your chosen retirement age, your money is gradually moved into a fund that holds a wider range of investments. In the last few years until you retire, the strategy moves into investments that are more in line with your chosen retirement goal.

Default lifestyle strategies offer pension scheme members an easy and effective way to save for retirement, where they do not have to do get involved with investment decisions if they don’t want to. They are used by members who have reviewed their options and decided they want to leave things in the hands of the experts. Default investments are designed to be suitable for as many people as possible and they are constantly monitored and adjusted to market conditions, based on the advice of trustees and their advisers. For your scheme, the Cash Lifestyle is the default investment chosen for Plan members from the three lifestyle strategies available.

No, it's not mandatory to remain in the Cash Lifestyle. This is the investment option that is normally used by members of the Plan who do not actively choose where to put their money.

You are free to choose your own selection of funds through the ‘self-select’ option which means you will be responsible for choosing and managing your own investments. While the Cash Lifestyle is your scheme’s default investment and has been designed to suit the needs of members who wish to take their retirement savings as a cash lump sum, you should review it regularly to ensure it continues to be right for your needs.

If you're not sure what to do about your investments, you should consider taking authorised financial advice. This is especially important if you have already made a withdrawal from your pension or are thinking of doing so in the next five to ten years, as the choices you make will affect how much you have for your retirement.
 

All three lifestyle strategies use the same five funds - more information on each of these funds can be found by reading the individual fund factsheets.

• The Global Sustainable Growth Fund
• The Diversified Growth Fund
• The BlackRock Over 5 Year Index Linked Gilt Fund
• The Global Sustainable Bond Fund
• The Cash Fund

Learn more about what happens to the contributions that are made to your pension.

Read for more information about how you can manage your money in your pension.

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