Our 9 Target Date Funds are designed for members who are likely to want flexibility in how and when they draw their pension at retirement.

This is often typical for members who are expected to have considerable pension savings (over £50,000) and who would normally seek to draw on their pension flexibly at various intervals rather than taking it all at once or using their pension savings to buy a guaranteed retirement income (an annuity). Each Target Date Fund has a target retirement year, which can be easily identified in the name of the fund, and these are provided in 5-year increments.

Using this target date, our experts create an investment strategy that is pre-programmed to target optimal growth over time based on how far from retirement members are. In earlier years, members will automatically be invested in a way that is designed to grow their pension savings. Gradually, these investments will shift via our investment glidepath to more conservative options that aim to preserve the value of their pension, reducing the risk of significant fluctuations in value whilst aiming to keep it ahead of inflation.

Once the target retirement age is reached, members’ pensions will remain invested in a range of different assets, rather than being converted to cash as with other options. This can be helpful for those planning on using features like Flexi-Access Drawdown.

Your guide to the information on this page

Applies to Creative Workplace Pension
Applies to Creative Auto Enrolment Pension

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Investing for future flexibility

Example: ML 2025 Retirement Age Fund

The funds aim to achieve real investment growth for members expecting to retire around a given year. Each fund will shift gradually to a focus on capital preservation over a period of 35 years using an investment glide path that sets the asset allocation between growth investments and investments targeting capital preservation, which are dynamically managed. The funds are designed to allow for continued investment growth for members who wish to continue managing their investments for post-retirement income.

The member’s pension will transfer into the Retirement Ready Fund automatically on 01 April in the year following the selected Target Retirement Date. To achieve this, each fund contains holdings in the following investment funds, which vary over time depending on how near you are to your target retirement age.

Funds used Allocation (%)
Time to Target Retirement Date (Years) Retirement Ready Fund
40 35 30 25 20 15 10 5
ML Equity Accumulation 100 100 66.7 33.3 0 0 0 0 0
ML Diversified Beta 0 0 33.3 66.7 100 85.7 71.4 57.1 42.9
ML Pre-Retirement 0 0 0 0 0 14.3 28.6 32.9 32.1
ML Sterling Liquidity 0 0 0 0 0 0 0 10 25.0
The asset mix of each fund will be reviewed periodically and may be amended if a review indicates that it would be in investors' best interest to do so. This means in future the fund could be invested in different funds and change its underlying holdings. Please check the fund factsheet for latest details on its holdings.
Risk Profile: Variable, based on years until retirement
Annual Management Charge1 0.75% p.a.

1 Other periodic charges may be incurred by the fund from time to time. These do not include the cost of buying and selling stocks for the fund. Please see the fund factsheet for further information.

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Made me realise how important it is to get things arranged.

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I realised the necessity of sorting my pension out and decoding how I am going to do this.

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Presentation was very thorough and outlined all the options available.

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I didn't really fully understand pensions and how they worked prior to this and now I feel assured and confident to make a decision to save for my future.

Employee and Pension Scheme Member

Extremely useful presentation. The Creative representative explained the scheme in terms understandable by everyone.

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It has helped me to feel in control of my pension.

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It helped explain our options very simply so much easier to understand rather than the usual jargon.

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