What is a Default Investment Option?

If you are unsure about selecting funds for your personal pension and do not require financial advice, you may wish to consider the Default Investment Option. This option could be suitable if you want to have a flexible income during your retirement.

The Default Investment Option may not align with your personal circumstances or financial goals. It's purpose is to grow your pension savings in the long term during your early and mid-career years. We automatically change where your pension savings are invested the nearer you get to your pension access age with the aim of minimising the risk of losing money. This is called a Lifestyle Profile.

Money into a machine

The advantages and disadvantages of a Lifestyle Profile.

 

 

Advantages

  • You don’t have to choose which fund(s) to invest in as the funds are set for you.
  • Your pension savings are automatically switched for you as you near your Pension access age.
  • You don't have to remember to switch funds. The timing of switches is automatic and happens at fixed times.

Disadvantages

  • You aren’t actively choosing to invest in a fund at any one time. There may be another fund more suitable to your needs.
  • The timing of switches is automatic and doesn’t take market conditions into account which means you may miss out on growth in the market.
  • A lifestyle profile doesn't guarantee the value of your pension savings.

How does this Default Investment Option work?

The way your pension savings are invested can be divided into 3 separate stages:

Growth stage

Growth stage

When you are more than 15 years from your Pension access age, your pension savings are invested with the aim of increasing the value of your pension pot.

Multi-Index 6 Fund (Medium Higher Risk)

Fund fact sheet Key Investor Document
Transition stage

Transition stage

When you are 15 years from your Pension access age, your pension savings will move to a medium-risk fund, meant for growth while reducing potential losses during market turbulence.

Multi-Index 5 Fund (Medium risk)

Fund fact sheet Key Investor Document
Nearing retirement stage

Nearing retirement stage

When you are five years from your Pension access age, we'll move your pension savings into a lower risk fund which is likely to have lower growth but aims to minimise potential losses during market turbulence.

Multi-Index 4 Fund (Lower Medium risk)

Fund fact sheet Key Investor Document

Multi-Pet Discount Terms and Conditions

A lifestyle profile doesn't guarantee the value of your pension savings; the value of investments can go down as well as up. Currently once you have chosen the Default Investment Option you can’t switch to a different fund.

Coins in a jar

Ready to open your pension?

If you think the default investment option is not appropriate for your needs and retirement objectives, you may wish to look at other available investment choices. If you are unsure which investment is right for you, we recommend you get in touch with a financial adviser or find one through Unbiased.

Open with the default option

Other ways to invest your pension

looking around

Simple Fund Choice

Based on your risk appetite, choose from five diversified funds, and we'll do the rest.

View funds