What’s a ‘glidepath’?

A ‘glidepath’ describes a mechanism by which investment profiles automatically move a member’s pension pot into more secure investments as they get closer to their selected retirement age. When joining the scheme, members with more than 15 years before their selected retirement age enter a growth phase, where contributions are invested in an equity based fund with the aim of maximising potential investment return for an appropriate level of risk. Members then enter a ‘glidepath’ phase where assets are switched into the Pre-Retirement Fund which has lower volatility (before 6 September 2016, assets were switched into both the Pre-Retirement Fund and the Cash Fund). This phase starts 15 years before their selected retirement age.

 

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Further details about investments can be found in the Annual Report and Financial Statement and separately, in the The People’s Pension Assurance Report.

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