The Aegon Workplace Default fund is designed to grow your savings over the long-term by investing in a diversified mix of investments. Six years before your target retirement date, the fund gradually and automatically moves into less risky investments.
It’s a type of lifestyle fund meaning the fund adapts to meet your changing needs throughout your working life and provides flexibility for you to remain invested at retirement if you wish.
Watch our short video below for more details.
The Aegon Workplace Default fund is designed for pension scheme members who are likely to stay invested at retirement and aims to keep your options open.
It adapts as you get closer to retirement, recognising that your priorities are likely to change.
Key features
Single fund solution
A whole investment portfolio in a single fund, that automatically adjusts as retirement nears, preparing savings to provide a retirement income.
Diversified
Helping to spread investment risk across a range of asset types and regions.
Good value
Low fund charge of just 0.05%, paid in addition to the annual management charge, meaning more of your money goes towards saving for your future.
Robust governance
Backed by our Funds Promise, we check the fund follows the stated objective and that as the market, and your needs evolve, the fund does too.
Considers ESG factors
We've reduced the fund's carbon footprint by 36% since 2020¹ by integrating environmental, social and governance (ESG) considerations into its investment process. (As at 30 June 2023).
How the Aegon Workplace Default fund works
Growth stage
In the early years the fund invests in a well-diversified mix of equities (shares in companies) and bonds (loans to governments or companies), designed to provide the average-risk investor with long-term growth potential.
To keep costs low, the fund uses passively managed investments, which aim to produce returns broadly in line with the markets they track.
Growth stage asset allocation
As at March 2024. Please view the fund factsheet for up to date asset allocation information.
Pre-retirement stage
Six years before you reach your target retirement date the fund gradually and automatically moves you into investments that are generally considered to be lower risk.
This process, known as the glidepath, continues until your target retirement date is reached.
Glidepath
As at March 2024.
At retirement
When you reach your nominated retirement age, you remain in the retirement stage asset mix unless you switch to another fund. At this stage, you will be invested in a cautious asset mix that aims to provide continued, moderate growth, with some potential for income generation, so you don’t need to make a decision immediately.
This recognises that you may wish to stay invested in early retirement, but may choose a variety of ways to build your retirement income.
At retirement asset allocation
As at March 2024. Please view the fund factsheet for up to date asset allocation information.
We regularly review this fund and may change the glidepath strategy or asset mix if we believe it's in the best interests of investors to do so.
How the fund integrates responsible investment factors
We believe that the way we invest can make a meaningful difference, both to investors’ financial futures, and the world we live in.
In 2019 we committed to net-zero greenhouse gas emissions for our pension default fund range by 2050 and to a 50% reduction in emissions by 2030¹. By June 2023, we’d reduced greenhouse gas emissions in this fund by 36%¹.
Today, 78% of the money managed in the growth stage (57% in the retirement stage) of the fund, is in investments that incorporate ESG screens (as at 31 March 2024).
Where these ESG screens apply, we exclude companies from the fund that are involved in certain types of industries, for example controversial weapons, tobacco, or thermal coal extraction, and those who have breached the United Nations Global Compact principles.
These are examples only, and not an exhaustive list. In some cases minimum investment thresholds will apply, for example, stating that companies must not derive more than 5% of their revenue from excluded activities.
After excluding these types of firms, the asset mix is adjusted to favour companies with stronger ESG scores over companies with weaker ESG scores.
¹Measured using carbon footprint. Scope 1 and 2 emissions from listed equities and corporate fixed income only. Carbon footprint defined as CO2 equivalent per £ million invested, calculated using enterprise value including cash.
We reserve the right to make changes to asset allocation both in the growth and retirement stages, and to the length of glidepath to ensure our default fund continues to meet the needs of pension scheme members.
The value of investments may go down as well as up, and you may get back less than you invested.
The choice is yours
The fund is designed to meet the needs of the 'average' workplace scheme member. You may prefer to choose a fund that is tailored more to your individual needs. If so, please review our other investment options.
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. If you don't already have one, you can find one at MoneyHelper.