What is a lifestyle or Workplace Target fund?
Updated 28 September 2016
Lifestyle and Workplace Target pension funds automatically change as you near retirement, getting your savings ready for when you need to take an income.
They’re designed for savers who don’t make active fund choices over the course of their working life, and aim to do the hard work for you.
There are two main stages:
- Growth stage – when savers are still some way off from retirement
- Retirement Target stage – when savers are approaching retirement
In the Growth stage these funds invest in a mix of investments designed to grow your pension.
In the Retirement Target stage we recognise that your priorities are likely to change, so we automatically and progressively move your fund into investments that get you ready for retirement.
These changes are designed to meet the retirement target you've selected – whether you want a flexible approach that keeps your options open, you want an annuity (which offers a guaranteed income for life), or you want to cash in your retirement savings.
We use the retirement date you’ve selected to work out when to automatically change your fund.
Speak to a financial adviser to find out more about lifestyle and Workplace Target funds.
The value of investments may go down as well as up, you may get back less than you originally invested. We review these funds regularly and may change them if we believe it’s in the best interests of investors.