Welcome to our lifestyle funds hub
If you are invested in a lifestyle fund (and you may be, without realising it if you're in a company pension scheme), we're here to help you understand how it works and how it affects your income in retirement.
A lifestyle fund is designed to automatically change as your needs change, from the moment you join your pension scheme right up to retirement, based on the outcome you have chosen (income drawdown, annuity or cash lump sum).
While you may still be a way off from retirement, a lifestyle fund aims to grow your savings, investing mainly in equities (shares in companies). As you approach your target retirement date, the fund automatically moves more of your pension savings into lower risk investments such as bonds (loans to governments or companies) and cash. The aim is to deliver you gently into retirement by reducing risk as you get closer to using your savings, whilst still retaining some growth potential.
Are you close to retirement?
If you're invested in a lifestyle fund, we'll send you letters as you approach retirement. These explain how your fund changes in the run up to retirement, preparing your savings for when you retire.
You should check that the fund still matches your retirement income plans, and that the retirement date we have for you is correct. If either has changed you may need to change your fund, or tell us your new planned retirement date.
Please remember that the value of an investment 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.
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 have a financial adviser, visit MoneyHelper to find an adviser near you.
