L&G PMC Investment Pathway Option 4 Take Money BG25
Making changes to your investment pathway
Some or all of your pension is invested in the L&G PMC Investment Pathway Option 4 Take Money BG25.
On 25 November, we’ll be making changes to the way this investment pathway option is invested. This guide is here to provide you with information on:
- Why we're making this change
- What you need to know
- Details on the changes
- Transaction costs
- Actions you need to take
- Financial advice
Quick links
Why are we making this change?
We review our investment pathways each year.
We believe this change will help the pathway to keep meeting its aim, whilst continuing to offer value for money.
What do you need to know?
The changes to this investment pathway will take place on 25 November 2026.
To make this change, we need to buy and sell funds. If fund prices are moving up and down a lot when the change is due to happen, we may delay it for up to 30 days. If we need to delay it for longer than 30 days, we'll write to let you know
The investment pathway's aim remains the same
Old aim | New aim |
|---|---|
The fund aims to provide an appropriate investment solution for those who plan to take all their money within the next five years. It will invest predominantly in assets that are less likely to go up and down in value. Underlying investments may change from time to time. | The fund aims to provide an appropriate investment solution for those who plan to take all their money within the next five years. It will invest predominantly in assets that are less likely to go up and down in value. Underlying investments may change from time to time. |
We're also changing the benchmark used for your investment option. A benchmark is a way of measuring how an investment option is performing. It is a point of comparison only, and it doesn’t affect your pension savings.
We're updating the investment pathway's benchmark so it better reflects the investments now held in the investment pathway.
Old Benchmark | New Benchmark |
|---|---|
45% Markit iBoxx £ Corporates 1-5 Years 45% SONIA 10% ABI UK Mixed Investment 40%-85% Pension Sector | ICE BofA GBP 3 Month Deposit Offered Rate Constant Maturity Index |
Transaction costs
There are transactions costs involved with making any investment pathway changes. We estimate that this may be up to 0.01% of the value of your savings or £0.10 for every £1,000.
Transaction costs aren’t extra costs from Legal & General. They’re costs that anyone switching funds must pay every time they buy and sell units. The cost can change daily and is included in the unit prices used to calculate the value of your pension plan. We’ve considered these costs as part of the decision-making process to enhance the L&G PMC Investment Pathway Option 4.
For more information on transaction costs please go to legalandgeneral.com/transactioncosts.
What do you need to do?
You do not need to do anything if you’re happy with this change. You can stay in this pathway and we’ll automatically make these changes on 25 November 2026.
If your plans for taking money from your pension have changed, you may want to review whether this investment pathway is still right for you.
If you want to choose a different option that better suits your plans, please do so before 20 November 2026.
To choose a different option you can:
- Use the L&G app
- Log into your online account
- Contact us by email or on 0345 070 8686
Fund Specific Risks
1, 2, 3, 4, 6a, 6b, 7, 10, 13, 22, 23, 30, 62
Each number relates to a risk associated with this fund, and this section contains descriptions of those risks.
There are some numbers missing from this list. Although L&G applies these risks to a range of funds, only the risks that might apply to this fund are shown in this list.
The fund invests in equities (shares of companies), so there is a higher risk of the fund’s value being volatile (i.e. going up and down) than with a fund which invests in most other asset types, particularly in the short term.
Investment returns on fixed interest securities, such as corporate and government bonds, are particularly sensitive to trends in interest rate movements and inflation. Their values are likely to fall when interest rates rise. Such falls may be more pronounced in a low, or negative interest rate environment and longer dated fixed interest securities will fall by more than short dated fixed interest securities.
The fund invests in fixed interest securities. The financial strength of a company or government issuing the security determines their ability to make some or all of the payments due. If this financial strength weakens, the chances of them not making payments increases and this will reduce the fund’s value.
The fund invests in higher yielding bonds (known as ‘sub-investment grade’ bonds). Compared to lower yielding bonds (known as ‘investment grade’ bonds) there is a greater risk that the fund will not receive back, either on time or at all, some or all of the amount invested or interest that is due to be paid.
The fund may undertake derivative transactions as part of efficient portfolio management (“EPM”) or reduction in investment risk in line with the Historic FCA Permitted Links rules.
The fund may undertake derivative transactions in line with the FCA Conduct of Business rules (COBS 21). The fund may invest in other collective investment schemes, which use derivatives for investment purposes as opposed to solely for efficient portfolio management or reduction in investment risk.
The fund may hold Over the Counter (“OTC”) derivative contracts with banks or other financial institutions. If these organisations experience financial difficulty, they may be unable to pay back the sums that they owe under the OTC derivative contracts. If this happens, the value of the investment will fall.
The fund invests in emerging markets where there may be limited information available publicly to investors. In general, emerging market issuers are not subject to accounting, auditing and financial standards and requirements similar to those required of developed market issuers. Also, local laws may prevent the repatriation of capital or profit from those countries into the UK.
In addition, the stock markets and currencies of emerging markets can be volatile, due to the fact that the political and economic systems in these countries are still developing. In such cases delays in settlement may cause the fund to have exposure to a third-party broker or counterparty. This may result in a greater risk that the value of the fund might go down. The investments in these markets might also be bought and sold infrequently therefore resulting in large changes in their prices.
The fund invests in money market products, with banks and other financial institutions. There is a risk of investing in money market products, if the financial institutions which hold the deposits suffer financial difficulties or become insolvent, they may not pay back some or all of the amount invested with them. This could mean that the fund might not get back the full amount deposited and its value will fall.
Some money market investments may be illiquid. The value of money market securities may fall due to changes in interest rates, including periods of negative interest rates, inflation, creditworthiness, wider credit events or extensions to the anticipated term of investments. If this happens the value of your fund may fall.
The fund manager may lend stock to other parties, and it is usual for the borrower to provide collateral. If the borrower fails to return the borrowed stock, the collateral may not be enough to cover the value of the stock, resulting in a reduction in the fund value.
The fund invests in inflation-linked bonds, which are particularly sensitive to changes in inflation rates. Their values are likely to fall when inflation rates fall.
Investors may receive less income through drawdown than if they had bought an annuity. They will not benefit from the security of a guaranteed income for life that an annuity offers. The policyholder should ensure that the pension scheme member speaks with his/her adviser about the level of income needed, their potential sources of income and overall financial circumstances before deciding how to take retirement income from the fund.
This fund is able to delay paying out, which may mean that you have to wait to get your money. A delay may happen when market conditions mean it is difficult for the fund manager to cash in investments to pay out to investors. For example, a fund with investments in commercial properties may find they may take time to sell. Whilst waiting to complete on the sale of properties, the fund manager may suspend making payments to investors who want to cash in.
The fund can only delay paying out if it is in the interests of all investors.
Financial advice
Making choices about your pension isn’t always easy. You might want to speak with a financial adviser.
You can find one at unbiased.co.uk. Check that they’re regulated by the Financial Conduct Authority. Financial advisers usually charge for their services.
Please note that this site is to provide you with further information regarding this investment change – we are not providing you with financial advice.
Legal & General (Portfolio Management Services) Limited
Registered in England and Wales No. 2457525
We are authorised and regulated by the Financial Conduct Authority.
Legal & General Assurance Society Limited
Registered in England and Wales No. 166055
We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Registered office for both companies: One Coleman Street, London EC2R 5AA
Trust-Based Occupational Pension Schemes are authorised and regulated by The Pensions Regulator.
Administrator: Legal and General Assurance Society Limited. Registered in England and Wales No. 00166055.
Registered office: One Coleman Street, London EC2R 5AA.
Legal and General Assurance Society are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. However, the administration of occupational pension schemes is not regulated by the FCA or PRA.
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