Fund choice
Our experience has told us that too much choice and complexity disengages most people, so we've made the fund choice simple.
Three investment profiles are available which are matched to your employees' preferred level of investment risk.
This range of investment profiles should suit most employees. However a self-select profile is also available for those who wish to choose their own combination of funds from the full range.
Fund range
|
Investment profile |
Investment composition |
Suitable for |
|
Cautious |
60% equity 20% corporate bonds 10% UK gilts 10% cash
|
Employees who wish to protect their capital and prefer low-risk investments. They are prepared to accept some degree of risk, but not much volatility.
|
|
Balanced |
80% UK and international equities 20% bonds and cash |
Employees who are happy to accept a degree of volatility in return for good medium to long-term growth. They are prepared to accept greater risk balanced with the prospect of greater growth.
This fund is the default fund if employees fail to make a choice.
|
|
Adventurous |
100% UK and international equities |
Employees who are experienced and knowledgeable investors. They are prepared to accept increased volatility in return for above average long-term returns.
|
Two additional funds will also be available for those employees who wish to choose their own investments:
- Pre-retirement fund
- Cash fund
Safeguarding your employees' money as they near retirement
As employees near retirement, we begin to move their pension fund out of equities and into less volatile investments. We call this the 'glidepath'.
In many pension funds this happens only five years before retirement, but with The People's Pension, we begin moving money from an employee's investment fund 15 years before their chosen retirement date.
This significantly reduces the risk of their pension fund falling in value just before they retire, so safeguarding their money. It also helps those employees who choose to take their pension before their selected retirement age.
Making an informed choice
We want to make your employees' investment choice as simple as possible. Too many workers fail to make any decision at all, which can impact their retirement funding in the future.
That's why we keep the fund choice simple and we will be developing tools which help them choose the right investment profile and contribution level, such as:
|
Fund information
|
An introduction to the investment choices, including a simple guide to investing and investment risk. |
|
|
Online questionnaire |
An interactive questionnaire assesses their attitude to risk.
|
|
|
Online calculators |
Interactive calculators that show the cost of delay or what they can expect back based on their contributions. |
|
