The advantage of a default fund is that your pension contributions are invested and managed for you, from the moment you join your scheme right up to retirement. A default fund aims to grow your savings during the early stages of your career, automatically changing your investments throughout your working life, before gradually moving into investments that are considered lower risk as you approach retirement.
Default funds are ideal for those who prefer a hands-off approach to saving for retirement. However, they don’t take into account individual circumstances or specific retirement plans, so it’s important to ensure your investment strategy aligns with your financial goals as you may find you want to take your savings in a different way.
It's also important to make sure you're happy with your target retirement age, as this may impact your investment strategy.
Please remember, the value of investments isn't guaranteed and may go down as well as up. You may get back less than you invest.
Log in to your TargetPlan account to find out which fund or funds you're invested in, check your investments, or make changes.
Other investment options
If you decide the default option isn't right for you, perhaps because it takes more or less risk than you're comfortable with, or because it's targeting an outcome that doesn't suit you, there are other fund choices available to you. What you choose depends largely on how confident you are making investment decisions and your attitude to risk.
It’s important to check that you are happy with your choices, especially as you get closer to retirement, as you may find you want to take your retirement savings in a different way. It's also important to make sure you're happy with your target retirement age, as this may impact your investment strategy.
Log in to your TargetPlan account to explore the full range of fund options available to you.
There’s no guarantee the fund will meet its objectives.
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. Before deciding to invest in a fund it's important to read the fund factsheet to find out more about where it invests, its objectives, charges and any fund-specific risks.
