Default investment options
Default investment options and strategies are intended to meet the needs of a wide range of pension plan members – people of different ages, backgrounds and income levels. There is no guarantee that they will be suitable for your particular retirement goals.
However, if you would rather not choose your own funds, like 80% of our members*, a default investment option gives you the reassurance of knowing that it has been selected by pension experts. In addition, it will be carefully monitored and may be changed if it is no longer considered to be right for your plan.
*Source: Fidelity International, November 2021
Working towards retirement
Nowadays many plans choose what is known as a ‘lifecycle strategy’ as their default. This means that during the early years of your working life, we invest your pension savings in a way that has the potential for long-term growth. When you’re closer to retirement, we aim to protect the value of your savings by gradually moving your money into more cautious investments. With this type of strategy, all the changes to your investments happen automatically – you don’t need to do anything.
Reviewing your choice of investment
Whether you choose your own funds or stay with your plan’s default investment option, it’s a good idea to review your pension savings on a regular basis, to make sure they’re right for your retirement goals. For example, you might want to think about whether you’re saving enough. You should also check that the retirement age shown on your account fits with your retirement goals, as this could affect how your pension savings are invested. Find out what this could mean for you on our
Reviewing your retirement age page.
Overview
