
Lifecycle Strategies

Does your current investment strategy match your retirement plans?
The Lifecycle and Lifestyle investment strategies are designed to make it easier for you to invest your pension savings. However, if the Lifecycle or Lifestyle investment strategy you’re currently invested in doesn’t match the way you intend to use your pension savings, you might not achieve the best outcome for your retirement goals.
You may wish to consider switching to one of the alternative Lifecycle 2020 strategies available for members to select if this reflects your retirement plans.
What if you’re currently invested in a Lifecycle 2020 strategy?
The four Lifecycle 2020 strategies ('Lifecycle to Lump Sum 2020', 'Lifecycle to Drawdown 2020', 'Lifecycle to Annuity 2020', and 'Lifecycle Balanced 2020') switch your savings over time into funds that are aligned with the strategies' stated retirement objectives, whether that's;
- taking 100% cash (Lump Sum),
- taking a flexible income (Drawdown),
- buying a guaranteed income for life (Annuity),
- or retaining flexibility with your options (Balanced).
Up until 8 years from your Target Retirement Age (TRA), the underlying fund allocation is the same for all four strategies. As you reach 8 years from your TRA however, the strategies start to diverge so that at retirement, the underlying fund allocation for each strategy is aligned to its stated retirement objective (i.e. Lump Sum, Drawdown, Annuity, or Balanced).
If you wish to switch to another Lifecycle 2020 strategy before reaching 8 years from your TRA, you will not incur any transaction costs because until this point, all four Lifecycle 2020 strategies are invested in the same underlying funds. Thereafter, you can still switch to a different Lifecycle 2020 strategy but you will incur transaction costs.
What if you’re currently invested in an older lifecycle or lifestyle investment strategy?
The older Lifecycle and Lifestyle strategies listed below are no longer available to select as new investment options although members already invested in any of these strategies can continue to contribute into them.
These strategies progressively switch your savings over time into funds that that are aligned with the strategies' stated retirement objectives.
- Lifecycle 2012 (targets a guaranteed annuity income for life)
- Lifestyle 2002 (targets a guaranteed annuity income for life)
If you wish to switch to an alternative investment strategy which better reflects your retirement plans, you may switch to any of the four Lifecycle 2020 strategies currently available for members to select. However, you may incur transaction costs as your underlying fund allocation will change in line with the new Lifecycle 2020 strategy you choose.
Does the Ex-DSL Lifestyle 1997 Strategy match your retirement plans?
The Ex-DSL Lifestyle 1997 strategy is the default investment strategy for members of the Data Sciences Limited (DSL) Money Purchase Pension Plan. It’s designed to make it easier for you to invest your pension savings.
Initially, the strategy invests your pension savings in the 70:30 Global Equity Index Fund up until 10 years before your target retirement age (TRA).
As you reach 10 years from your TRA, your savings are then gradually switched into the Money Fund and the Over 15 Year Gilts Fund so that at retirement, 20% or your savings is invested in the Money Fund and the remaining 80% is invested in the Over 15 Year Gilts Fund which members can use to buy an annuity to provide a guaranteed regular income.
However, if this strategy does not match the way you intend to use your pension savings, you might not achieve the best outcome for your retirement goals. You may therefore wish to consider switching to one of the alternative Lifecycle 2020 strategies currently available for members to select if this better reflects your retirement plans.
Please note: The Investment Management Charges (IMCs) for the Ex-DSL Lifestyle 1997 strategy are paid by IBM. If you switch your savings to one of the Lifecycle 2020 strategies, you will incur the IMCs as these are not funded by IBM. You’ll also incur transaction costs as your underlying fund allocation will change in line with the new Lifecycle 2020 strategy you choose.
Go to Your investment range for further information.
Why does your Target Retirement Age (TRA) matter?
It’s important that you set a TRA that matches the date you want to take your pension savings. If you plan to retire earlier or later than your TRA it's important that you tell us about the change to your TRA as early as possible
This is because if you set a TRA that is earlier than you plan to access your pension savings, the underlying fund allocation will change earlier than It’s designed to, and this may generate lower returns. Conversely, if you set a TRA that is later than you plan to access your pension savings, the underlying fund allocation will change later than I’s designed to and as a result, your pension savings may remain in more volatile funds which could impact their value as you approach retirement.
You can change your TRA at any time by calling 0345 675 0017 or through Manage Your Account
Where do you go for further advice?
Neither Legal & General nor the Trustee is permitted to offer financial advice to members. This area is strictly regulated by the Financial Conduct Authority and only those persons who are qualified to give financial advice are allowed to do so.
If you require financial advice on your investment choices, you can find your nearest Regulated financial adviser by by visiting MoneyHelper | Choosing a financial adviser. Please note, financial advisers will usually charge a fee for their services.
If you are aged 50 or over, you also have the right to contact 'Pension Wise', a free and impartial government service that helps you to understand your pension options. You can find more information at pensionwise.gov.uk