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Your investment options

Members of this pension plan can invest their pension savings in either:

1. An investment fund

A fund can invest in different things such as property, company shares, bonds and cash. 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. 

Each fund has a fund management charge (FMC), which is made up of the investment management charge (IMC) plus additional expenses (AE). The FMC includes:

  • investment management fees,
  • fund administration fees,
  • custody/custodian fees,
  • auditing and accounting fees,
  • regulatory charges.

The FMC varies from one fund to another.

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.

If you select one of our Target Date Funds, you will also be choosing a fund that adjusts the way your savings are invested as you get closer to your target retirement date and beyond. For more information see our Guide to Target Date Funds.

Your scheme AMC can be found in the Member booklet. Sometimes we may need to make changes to our charges or introduce new charges.

If you invest in a lifestyle profile, the charges you’ll pay will be calculated on the amount of your pension savings invested in each fund(s).

2. A lifestyle profile

This is an investment strategy that automatically adjusts where your pension pot is invested as you approach your selected retirement age. A typical lifestyle profile is designed to automatically move your money into funds that reflect the way you want to take your money when you get to your selected retirement date, such as taking regular income or cash lump sums.

To find out more about funds including our Target Date Funds, and lifestyle profiles and how they work please see Your investment guide.

Legal & General has created several lifestyle profiles that you can choose from, which we’ve detailed below:

You can only invest in one lifestyle profile at a time and cannot invest in any other funds at the same time. To find out more about lifestyle profiles, click on the links above. You’ll see information about the funds they invest in and their advantages and disadvantages.

Target Date Fund

The Legal & General Target Date Funds allow you to match your investment strategy to a range of ‘target dates’.

Each Target Date Fund targets a different five year range, which will normally include the year you expect to retire or initially access your pension savings.

Why choose a Target Date Fund?

The Target Date Funds aim to help you grow your retirement savings over time to provide an income in later life.

If your retirement plans change, you can change to a different Target Date Fund at any time.

Each Target Date Fund invests in a wide range of assets such as company shares, government and corporate bonds, property, infrastructure and other investments.

Each Target Date Fund adjusts the way your savings are invested as you move closer to and then into retirement.

To find out more about target date funds, please see your Guide to the Target Date Funds or The Target Date Funds video.

Investing in a Target Date Fund

Investing in a lifestyle profile

Members are invested in one fund for their whole retirement journey.

Members will be invested in more than one fund as they approach retirement.

Bonds are a type of asset that can form part of a fund. The fund invests in a larger amount of bonds as members approach their selected retirement date.

At a certain point before a member’s selected retirement date, their savings will be moved into different fund(s). Further information can be found in the specific lifestyle factsheet

Members are likely to leave their savings invested and drawdown income.

Members can choose different lifestyles, which are designed for those who would like to choose either drawdown, an annuity or cash at retirement.

The fund manager can change how the fund is invested if they think it could deliver a better outcome for members.

The switching of money into other funds happens automatically and cannot be changed to reflect market conditions.

The fund manager can make changes to the way the fund is invested beyond the ‘target date’.

Automatic switching stops when members reach their selected retirement date. Members' savings will stay invested in this way from that point.

Members can invest in other funds, including other Target Date Funds, at the same time.

Members invested in a lifestyle profile cannot invest in any other funds or lifestyle profiles at the same time.

Responsible investing

Our goal is to help people save for their retirement, creating brighter financial futures. We also want to help create the kind of world people want to retire in. Find out how considering environmental, social and governance issues in the investment process, and engaging with the companies we invest in, helps towards this goal. Visit the ESG Hub for more information.

If you want to make sure that you are making responsible investment choices, our responsible investing guide will help you understand your options.

Balancing risk and reward

All investment involves a degree of risk. It’s important that you understand, and are comfortable with, the risks you're taking before making any investment choices.

Your investment guide includes a step-by-step guide to help you understand all the things you should consider before making any investment decisions.

Want more detailed information about your funds?

For more information on your investments, see the Your investment guide.

If you think you want to make your own investment decisions, visit Investment guide - pension pot for the things you need to consider.

Before you make any investment decisions, make sure you understand what investment risk is and how you feel about it. Your guide to how your funds are managed explains the key principles we follow when managing our funds and what happens when an unexpected event occurs.

Your funds and lifestyle profiles

For the funds and lifestyle profiles available to you register or log in to Manage Your Account.

Responsible investing

Find out how our investment management business incorporates a responsible investing approach, considering environmental, social and governance (ESG) issues in their investment process.