The Lifestyle options need the least input from you. The Plan’s Trustee selects the funds your savings will be invested in.
- While you are still some years away from retirement, your contributions are invested in a fund looking to achieve investment growth.
- As your retirement approaches, your savings are switched into investments that have a lower level of risk. This is intended to protect your savings for retirement.
- To time the switch from growth assets, it is important that your nominated Plan retirement age is up-to-date.
- You can update your Plan retirement age by logging into your Standard Life account. The default age is 65 for most members, unless you are an ex-Final Salary member (it will be 60).
There are four variants of the default fund. These all invest in the same way until you get within 5 years of your retirement date.
They then invest in slightly different funds which suit how you are going to take your pension benefit.
The options are:
- Getting ready for flexible retirement
- Getting ready for income drawdown
- Getting ready to purchase an annuity
- Getting ready to cash out
To understand how the Lifestyle options differ in the final 5 years please click on the drop down boxes below.
Getting ready for flexible retirement
Under this option, your savings are invested in a mix of assets to target flexible retirement. Members are likely to take full advantage of the full range of benefit options available to them, for example any three of the following options. This option is designed to be broadly suitable irrespective of the type of benefits you take. This is the default option for the Plan.
Getting ready for income drawdown
Under this option, as you approach retirement your savings will automatically switch into funds that aim to find a balance between continuing to grow and protecting the value your savings, to help prepare you to take your savings a bit at a time (known as drawdown).
Getting ready to purchase an annuity
Under this option, as you approach retirement your savings will automatically switch into funds that aim to protect your savings against the cost of buying an income for life (known as an annuity).
Getting ready to cash out
Under this option, as you approach retirement your savings will automatically switch into funds that aim to protect the value of your savings. This option helps prepare you to take your savings as cash
All three Lifestyle options are designed assuming you will take 25% of your Retirement Account as a tax-free lump sum.