Why is the investment charge for Retiready Stability higher than for Retiready Solutions 2-5?
Updated 26 February 2019
The funds Retiready Solutions 2 to 5 have an investment charge of 0.38% a year. Retiready Stability has an investment charge of 0.82% a year. Please note: Retiready Stability is only available to pension investors.
The reason Retiready Stability is more expensive than Retiready Solutions 2 to 5 is that it invests in a blend of four absolute return funds and the cost of accessing these funds is higher.
Absolute return funds tend to be more expensive than more traditional funds because of the broad range of investments they can access and the strategies they use to help produce positive returns in all market conditions.
We’ve chosen this type of solution as opposed to a cheaper, cash alternative because we believe that the extra costs involved will be justified by steadier, above cash returns over the medium to long term, although there are no guarantees.
The investment charge is taken directly from the fund price rather than the cash facility. You will also pay a charge for using our Retiready service, which is in addition to the investment charge. You can see the full details of percentage charges that apply to your account in your Illustration document. You can access this via the Savings tab by clicking on your Pension or ISA and selecting the ‘Document’s tab.
If you’re a workplace customer, or have recently been transferred from your Aegon pension to Retiready, you could be invested in other funds so your investment charge may be different.
To find out the charges that apply to you, please see the illustration within your online document library.
Charges might vary in the future.
The value of investments can go down as well as up. Investors may get back less than they invest.