From 5 November 2024, we’re making some changes to Aegon’s MI Workplace Savings fund range, across our insured Pension and Aegon Retirement Choices (ARC) fund ranges.
The changes we’re making
Growth stage investors (more than seven years from their selected retirement date)
For current investors in the growth stage of the lifestyle process (more than seven years from their selected retirement date), we’re closing their existing fund and switching them into the Aegon Growth Tracker (Flexible Target) fund. You can find more information in the ‘What this means for investors in the growth stage’ section below.
Lifestyle stage investors (those less than seven years from their selected retirement date)
For current investors in the lifestyle stage (those less than seven years from their selected retirement date), they will remain in their current fund but we’re changing the underlying investments used in the lifestyle stage to invest in the Aegon Growth Tracker (Annuity Target) fund. The name of these funds will be updated. You can find more information in the ‘What this means for investors in the lifestyle stage’ section below.
You’re moved into the lifestyle stage of the fund when you’re within seven years of your planned retirement date. Then, from six years onwards, your investments are gradually changing as you approach retirement. Aegon’s MI Workplace Savings fund range was designed for people who wish to buy an annuity, or guaranteed income, when they retire. If you’re not sure what this means, go to our lifestyle funds hub where you will find more information about our lifestyle funds.
Why we’re making these changes
The underlying fund manager, BlackRock, is closing the underlying investments this fund range uses. We’re writing to all those affected to let them know.
The funds affected:
Pension funds
Aegon Retirement Choices (ARC) funds
- Aegon’s MI Workplace Savings (L) (ARC)
- Aegon’s MI Workplace Savings (M) (ARC)
- Aegon’s MI Workplace Savings (H) (ARC)
If you’re in the lifestyle stage, you will also have a year after the fund name. This number indicates the year you’re set to retire in and you can find more about this on our website – ‘What does the number in my fund name mean’.
From 5 November 2024, we’re closing Aegon’s MI Workplace Savings fund range. When the funds close, we’ll move investors into the Aegon Growth Tracker (Flexible Target) fund.
Aegon’s MI Workplace Savings fund range was designed for investors who plan to buy an annuity, or guaranteed income, when they retire. The new fund, the Aegon Growth Tracker (Flexible Target) fund, is designed for those who want to keep their options open at retirement.
More about the Aegon Growth Tracker (Flexible Target) fund
We’ve chosen this fund as it’s one of our preferred funds for investors in a workplace pension scheme. This is sometimes called a scheme default fund. A default fund is a type of lifestyle fund that members of a pension scheme are invested in if they don’t choose a fund when they join their scheme.
We’ve decided to take this action in response to significant changes we’re seeing in the choices that customers are making at retirement. The majority are now choosing a flexible retirement option instead of buying an annuity at their retirement date, which Aegon’s MI Workplace Savings fund range was originally designed to support.
When we switch investors into the Aegon Growth Tracker (Flexible Target) fund, the charges they pay for the fund will reduce.
There’s no guarantee the funds will meet their objectives. The value of an investment can fall as well as rise and is not guaranteed. Investors could get back less than they pay in.
From 5 November 2024, we’re making some changes to the lifestyle stage of Aegon’s MI Workplace Savings fund range. The changes are:
- The underlying investments used in the lifestyle stage of each fund.
- The name of each fund.
- The charges for each fund will reduce.
There’s more information in the tables below:
Pension funds
Old underlying fund |
New underlying fund |
|---|---|
Aegon’s MI Workplace Savings (L) Aegon’s MI Workplace Savings (M) Aegon’s MI Workplace Savings (H) |
Aegon Growth Tracker (Annuity Target) |
Old fund name |
New fund name |
Aegon’s MI Workplace Savings (L) (year)* |
Aegon Growth Tracker (Annuity Target) ex-MI WPS (L) (year)* |
Aegon’s MI Workplace Savings (M) (year)* |
Aegon Growth Tracker (Annuity Target) ex-MI WPS (M) (year)* |
Aegon’s MI Workplace Savings (H) (year)* |
Aegon Growth Tracker (Annuity Target) ex-MI WPS (H) (year)* |
Source: Aegon UK
Aegon Retirement Choices (ARC)
Old underlying fund |
New underlying fund |
|---|---|
Aegon’s MI Workplace Savings (L) (ARC) Aegon’s MI Workplace Savings (M) (ARC) Aegon’s MI Workplace Savings (H) (ARC) |
Aegon Growth Tracker (Annuity Target) (ARC) |
Old fund name |
New fund name |
Aegon’s MI Workplace Savings (L) (ARC) (year)* |
Aegon Growth Tracker (Annuity Target) ex-MI WPS (L) (ARC) (year)* |
Aegon’s MI Workplace Savings (M) (ARC) (year)* |
Aegon Growth Tracker (Annuity Target) ex-MI WPS (M) (ARC) (year)* |
Aegon’s MI Workplace Savings (H) (ARC) (year)* |
Aegon Growth Tracker (Annuity Target) ex-MI WPS (H) (ARC) (year)* |
Source: Aegon UK
*This will correspond to the year investors have nominated to retire.
Aegon’s MI Workplace Savings fund range was designed for investors who plan to buy an annuity when they retire. The new fund, the Aegon Growth Tracker (Annuity Target) fund, also aims to meet that outcome for investors.
The charges for this fund will reduce when the changes happen on 5 November 2024.
There’s no guarantee the funds will meet their objectives. The value of an investment can fall as well as rise and is not guaranteed. Investors could get back less than they pay in.
You can find more information about these funds in the fund factsheets on the ‘Fund prices and performance’ page of our website by selecting ‘Other fund ranges’ or ‘Aegon Retirement Choices’ and searching by the fund name.
What current investors need to do
If investors are happy with the changes, they don’t need to do anything as they will happen automatically. However, if investors want to discuss their options as they approach retirement, they should speak to their financial adviser, if they have one, before making any decisions.
If you don’t have a financial adviser, you can visit moneyhelper.org.uk/choosing-a-financial-adviser to find the right one for you.
Investors can move their investment, with no switch charge into a different fund or funds they choose by logging into their online account.
We’ll update our literature and our website as soon as we can, but investors may notice the old and new information in use for a time (for example on our fund factsheets).