The advantage of a scheme default is that your pension contributions are invested as soon as you join your scheme, and are managed for you from the moment you join your scheme right up to your selected retirement date. Default funds tend to get a higher level of scrutiny because employers and scheme trustees have a regulatory obligation to ensure their default fund remains appropriate for their scheme.
Aegon Master Trust default fund
If you don't choose your own investment options within Aegon Master Trust, you'll automatically be invested in the scheme's default fund, the Aegon BlackRock LifePath Flexi fund.
This fund is designed to meet your changing needs, from when you join the scheme right through to retirement. The mix of investments the fund holds is adjusted over time, focusing on growing savings when you're young and gradually moving into investments that help to protect your wealth as you approach and prepare for retirement.
The trustees of Aegon Master Trust have selected Aegon BlackRock LifePath Flexi as the scheme default because they believe it best fits the needs of the average scheme member, but it might not be the right fit for you.
If you would prefer to make your own investment choice, Aegon Master Trust offers a range of 28 available funds. The comprehensive range includes funds that invest in different types of investment (such as shares in companies, bonds and cash) and those that invest in different countries. Many of these funds take responsible investment factors into account. This means you can build a portfolio of investments suited to your own circumstances and invest in line with your values.
You can find out which fund or funds you're currently invested in, switch funds or change your retirement date by logging in to TargetPlan and selecting View and manage. It's important to check, especially as you get closer to retirement, as you may find you want to take your retirement savings in a different way or at a different retirement age.
The value of an investment can fall as well as rise and isn't guaranteed.
The final 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 financial adviser. There may be a charge for this.
