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The low-involvement option
What is it?
Your employer, with the help of their adviser, has chosen an investment option which they believe is a good choice for most people in the company pension. Unless you decide to move your money into another investment option, this is where it will stay.
This investment option is the low-involvement option and it's designed to make saving for retirement easier.
How it works
Lifestyling changes your investments as you get closer to retirement
The low-involvement option is designed for the long haul and has a feature called lifestyling.
When you’re getting closer to retirement, it could be sensible to move your money into funds which are more appropriate at retirement. Lifestyling can do this for you.
In most cases, when you start your pension plan, it invests in the an investment fund, which aims to increase the value of your pension savings over time.
When you get closer to retirement your money will gradually and automatically move into lower risk funds designed to give you the flexibility to take your money the way you want when you retire.
Things to be aware of
- You should make sure any lifestyle profile you choose matches how you plan to take your retirement income
- As lifestyle profiles make changes to your investments based on your selected retirement date, they may only be suitable if you're planning to start taking your retirement income on this date
- If you're in a lifestyle profile, you can’t invest in any other lifestyle profile or funds
- Before you choose an investment option, make sure you understand its aims and risks
- As with any investment, the value can go down as well as up, and may be worth less than was paid in
So what now?
- If you're happy to keep your money in this option, you don’t need to do anything
- If you’d like more information about this option, including the funds it invests in and what its objectives are, you can read the How to choose the right investment options for your pension guide (PDF, 334KB)
- If you don’t want to stay invested in this option, then take a look at your other investment options
- Remember, you are in control and you can change your investments at any time you choose.