Although it can be beneficial for members to have active participation in how their money is invested so their preferences and future plans can be considered, we recognise some pension savers aren’t comfortable making investment decisions but are content to save into a workplace pension where these decisions are taken on their behalf.
Our Default Investment Strategy, which we call the ‘Lifestyle Strategy Fund’, provides members a quality alternative if they have yet to, or do not wish to, choose an investment for themselves.
When members default to our Default Investment Strategy, we invest their pension in a way that is designed to grow their savings in the long term during their early and mid-career years via a carefully selected range of investment funds managed by State Street Global Advisors. This provides a broad portfolio of underlying investments such as stocks and shares, government and corporate bonds, which we expect to provide a financial return.
Over the years, we will change the mix of these investments depending on the financial outlook and how far they are from retirement. On approach to retirement, we will automatically ensure their money is invested for the short term, making sure it is ready to be taken when it’s needed. The Default Investment Strategy is designed to migrate members’ investments into cash by age 65 or whichever retirement date they provide us.