Other ways to invest your pension
Members of this pension plan can invest their pension savings in either:
Investment fund
An investment fund can invest in different things such as property, company shares, bonds and cash.These are known as asset classes.
It is run by a fund manager who makes sure the fund(s) is/are being run in the right way on behalf of the investors.
You can invest in a range of different investment funds.
What happens when I invest in a fund?
Each fund is divided into units. When you invest in one of our funds, you buy units in that fund.
The price of units will change as the value of the underlying assets purchased by the fund changes.
If the unit price goes up, the value of your investment will increase. Similarly, if the unit price falls, so will the value of your investment.
For more information about investing and the choices available to you, see Your investment range.
Investment pathways
If you choose to take a flexible income, that decision is about what you want to do with your pension savings today. Investment pathways have been designed to help make sure that the portion of your money that remains invested can support your objectives for the future.
You can choose from the options below and decide which option best suits your objectives for the next five years. If you have more than one goal you might want to think about splitting your pension savings between the different options to achieve this. We’ll invest your pension for you in a way that supports your choices.
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Which option best suits your objectives for the next five years?
Option 1
I have no plans to touch my money in the next five years
Leave it invested: You may be thinking about leaving this part of your pension savings for inheritance or investing it for later in retirement. This option aims for longer term investment growth.
Option 2
I plan to set up a guaranteed income (annuity) within the next five years.
Be ready to buy an annuity: You are looking to use this part of your pension savings for a guaranteed income (annuity). You want to know exactly how much you're getting, come rain or shine. This option will invest your savings until you’ve shopped around for the annuity that suits you.
Option 3
I plan to start taking a long-term income within the next five years.
Start taking a flexible income: You might be planning on using this part of your pension savings for an occasional or regular income to meet your day to day needs in the early years of your retirement. This option aims to support withdrawals with the potential for investment growth over a longer period.
Option 4
I plan to take my money within the next five years
Use it all: You are thinking about taking this part of your pension savings for holidays or rainy days. This option aims to invest your pension savings in funds that are less likely to go up and down in value.
What are the charges?
Each investment fund has a fund management charge (FMC). The FMC is a regular charge and varies from fund to fund. It covers the day-to-day costs of managing the fund.
It is made up of the investment management charge (IMC) plus additional expenses (AE).
The additional expenses (AE) are variable and consist of things like:
- share registration fees
- legal fees and
- custodian fees.
They can vary throughout the year and the FMC may change from time to time when they are updated. To work out the total cost of running a pension plan, add the annual management charge (AMC), which covers Legal & General’s administration costs, to the FMC.
Your scheme AMC can be found in the Member bookletOpens in new tab. Sometimes we may need to make changes to our charges or introduce new charges.
