Where your employees’ pensions are invested is very important. It has a big impact on how much they’ll have in their pot when they retire and how long this will last.

But understanding where best to invest can be one of the hardest choices for employees. You too have some difficult decisions to make. You need an appropriate default investment option for employees who don’t want to choose their own investments. And you need choice for those who do.

Your investment checklist

Here are some things to think about:

  • Does the default meet the retirement goals and attitude to risk of most of your employees?
  • Does it give their money the chance to benefit from good performance over the long term?
  • Does it manage risk to give them the confidence to stay invested?
  • Can it be easily changed? For example, if there are changes in legislation or regulations, or if your employees’ needs change
  • Are there other choices for employees who don’t want to stay in the default?

How can we help?

We aim to:

  • Make it easy for you to choose an appropriate default that goes beyond regulations and legislation
  • Offer simple, value-for-money investment options that not only give employees choice, but also a good chance of meeting their retirement income goals
  • Give employees clear, simple information to help them make the right choices
  • Give employees the confidence not only to stay invested but also to save more
  • Keep employees informed about how their investments are doing, with a yearly statement.

We also support you and your employees at every stage. Not only can our flexible investment options evolve to reflect changes in legislation and employee needs. We make sure they never take any more or less risk than they should, and that they continue to deliver their expected outcomes – what we call ‘investment governance’.

Download our investment governance guide (PDF, 381kb)

Active management

We believe in active fund management, where our experts look for opportunities for funds to perform better than a particular market, benchmark or other similar funds. This is different to passive funds, which aim to match a market or benchmark.

Nobody can ever promise that investments will always go up in value, and there’s always a risk that they may be worth less than what was put in. But our experts are always working to make the most of investment opportunities for your employees - to try and increase returns and to minimise losses.

Choosing a default investment option

Our strategic lifestyle profiles (SLPs) are:

  • Simple
  • Future-proofed
  • Manage risk
  • Include a diverse range of high-quality investments
  • Are regularly reviewed and monitored

You can have as little involvement or as much involvement as you want.

Don't want any involvement?

Our default investment option (also called the low-involvement option) is the Active Plus III Universal Strategic Lifestyle Profile (SLP).

Download the Active Plus III Universal Strategic Lifestyle Profile guide (PDF, 104kb)

It is designed to make it easy for employees to save for retirement. It’s also designed so they can keep their options open about how they take their money when they retire – they’re not tied to one single option, such as buying an annuity.

Want to choose?

Our SLPs give you the chance to choose a default that meets your employees’ specific needs. It also gives employees additional choice if they want it. You can choose an SLP that has a different:

  • risk level - if you believe your employees are comfortable taking more or less risk
  • retirement goal – including annuity purchase, drawdown and a lump sum
  • investment style – to suit your preference or budget

Or all three.

Choices for all

Pensions investment options bar graph

* Risk level I Universal and Active Retirement glidepaths aren’t available as these would take more risk than appropriate for employees with a very low tolerance to investment risk.

Reports and factsheets

Other options

One size doesn’t fit all when it comes to investments. Some employees may be more knowledgeable about investments and want to build their own pension investment portfolios. And some workforces have different requirements. So we offer choice beyond our defaults and SLPs.

Full fund range

Employees with a good understanding about investments can choose from hundreds of funds from leading fund management groups. These cover different asset classes, regions and investment styles.

See our full range.

All these funds are regularly reviewed as part of our investment governance processes.

Download our investment governance guide (PDF, 781kb)

Employer-designed investments

Looking for investment options that meet specific requirements? If your scheme meets certain criteria, we can help:

  • Design a default tailored to your employees’ needs (Customised default options)
  • Blend together two or more funds from our fund range to create a single fund. (Blended funds)

Download our blended funds guide (PDF, 178KB).

  • Create a shortlist of funds if you feel employees might be overwhelmed by too much choice. (Selected fund range)

Speak to your financial adviser or contact us for more information about employer-designed investments.