What is a Lifestyle or Workplace Target fund?
Updated 03 August 2018
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 automatically and progressively move your fund into investments that get you ready for retirement.
These changes are designed to meet the retirement outcome you've selected - whether you want an annuity (which offers a guaranteed income for life), or you want to cash in your retirement savings, or you want a flexible approach that keeps your options open.
We use the retirement date you've selected to work out when to start automatically changing your fund in this way. So if your retirement date changes, you should let us know.
Speak to a financial adviser to find out more about Lifestyle and Workplace Target funds.
The value of an investment can fall as well as rise and isn't guaranteed. You could get back less than you originally invested.