Our Retirement Target funds, also known as lifestyle funds, aim for a 'target' outcome when you retire.
The outcome can be a:
- Flexible Target - if you want to keep your options open about how and when you'll take a retirement income
- Annuity Target - if you prefer a guaranteed retirement income for life
- Cash Target - if you want to take a cash lump sum on retirement
These funds automatically change as you near retirement, preparing for the way you want to access your savings.
There are two main stages
Growth - when you're still some way from retirement
In this stage these funds invest in a mix of investments designed to grow your pension pot. That mix of investments is checked and adjusted regularly on your behalf.
You can choose the fund that best meets your savings needs and attitude to risk.
Retirement target - when you're approaching retirement
This stage happens in the final years before you’ve told us you want to retire. We recognise that your priorities are likely to change as retirement approaches, and automatically move your fund into investments that get you ready for retirement. These changes are designed to meet the retirement target you've selected whether that's a Flexible Target, an Annuity Target or a Cash Target.
Fund monitoring
All our Retirement Target funds are managed by experts, and are monitored by our Fund Governance team, who check if they're meeting our Funds Promise commitments.
This monitoring is designed to help us achieve our aim of offering high quality funds which meet your expectations.
The value of investments in the growth and retirement target stages can fall as well as rise and isn't guaranteed. The value of your pension pot when you come to take benefits may be less than has been paid in.
Find out more about the approaches used in the retirement target stage below:
We review our Retirement Target funds regularly and may change them if we believe it's in the best interests of investors.
The choice is yours
Your choice of investment fund can have a big effect on your pension benefits. If you're in any doubt about which fund's right for you, you should speak to a professional financial adviser. If you don't already have one, you can find one at MoneyHelper.