Investing your pension

When saving for the long term, like you do with your pension, we invest your money as this gives it a better chance of being worth more in the long run

Pension investment choices

1. Leave your money as it is

Unless you tell us otherwise, we’ll automatically invest your money in our ‘balanced’ investment profile.

2. Choose how your money is invested

You can choose other investment options through your Online Account if you want to.

There’s 3 investment profiles to pick from (‘balanced’, ‘cautious’ or ‘adventurous’). Or, for those who are more confident with investment decisions, you can self-select from our range of investment funds.

Understanding investment options and investment risk

Investing simply means that rather than putting it into a bank account, your money buys investments, like stocks and shares.

If you want to decide for yourself how your pension savings are invested, it’s important to know that investment risk and investment return tend to be linked. Usually the higher the potential investment return, the greater the investment risks.

And the greater the risk, the more likely the investment is to go up and down in value over a short space of time – this is called volatility.

If you want to learn more and get involved with how your money is invested, understanding investment risk is a great place to start. Here’s a video from Quietroom all about investment risk…

Where we invest your money

The People’s Pension has a range of investment funds, which are typically a mixture of shares from around the world and bonds and gilts.

We invest our members’ money across the different funds – depending on what options you choose and how close you are to retirement.

Investment options with The People’s Pension

If you decide to change from the default, it’s worth reviewing your options on a regular basis to check they meet your requirements. To make your investment choice, or to change how your pension savings are invested, log in to your Online Account.

Option 1 – stick with the default

We automatically invest our members’ money in our ‘balanced’ investment profile (we also call this our default investment profile), unless they tell us otherwise.

So our members don’t have to do anything, they can leave it to us if that’s what they prefer.

Option 2 – choose an investment profile

Investment profiles bring together groups of investments with different levels of risk. There are 3 to choose from with The People’s Pension:

  • balanced
  • cautious
  • adventurous
Option 3 – self-select from our investment funds

Or members can decide for themselves where their pension savings are invested by choosing from our investment funds.

Each fund has a different level of risk and members can decide how much of their money they want to put in each fund.

Our investment profiles

Members of The People’s Pension have a choice of how we invest their pension savings.

We’ve got 3 simple profiles to pick from:

  • balanced
  • cautious
  • adventurous.

And members can change their investment profile through their Online Account.

About our investment profiles…


Our ‘balanced’ (default) investment profile

For members who are prepared to accept some risk but would also like some of their investments to be secure.

If members don’t choose an investment profile (or they’d rather leave it to us), we’ll automatically invest their money in our ‘balanced’ investment profile.

The ‘balanced’ investment profile:

  • is our default investment profile
  • has potential for long-term growth with some security
  • moves to lower-risk investments as members approach retirement.

The fund that makes our ‘balanced’ investment profile is our Global Investments (up to 85% shares) Fund which means members’ money is invested in:

  • UK Equity Index Sub-Fund (15.250%)
  • North America Equity Index Sub-Fund (15.250%)
  • Europe ex UK Equity Index Sub-Fund (15.250%)
  • Japan Equity Index Sub–Fund (7.625%)
  • Asia Pacific ex Japan Equity Index Sub-Fund (7.625%)
  • Emerging Market Equity Sub Fund (5.000%)
  • SPDR Multi Asset Global Infrastructure ETF (7.000%)
  • SPDR Global Real Estate ETF (7.000%)
  • Sterling Corporate Bond All Stocks Index Sub-Fund (5.000%)
  • UK Conventional Gilts All Stocks Index Sub-Fund (5.000%)
  • Global Aggregate Bond Index Sub Fund (Hedged to GBP) (10.000%)

See our Global Investments (up to 85% shares) Fund factsheet


Our ‘cautious’ investment profile

For members who are prepared to accept some degree of risk but look for investments which won’t go up and down a lot.

The ‘cautious’ investment profile:

  • has potential for moderate growth over the long term
  • moves to lower-risk investments as members approach retirement.

The fund that makes our ‘cautious’ investment profile is our Global Investments (up to 60% shares) Fund which means members’ money is invested in:

  • UK Equity Index Sub-Fund (15%)
  • North America Equity Index Sub-Fund (15%)
  • Europe ex UK Equity Index Sub-Fund (15%)
  • Japan Equity Index Sub–Fund (7.5%)
  • Asia Pacific ex Japan Equity Index Sub-Fund (7.5%)
  • Sterling Corporate Bond All Stocks Index Sub-Fund (20%)
  • UK Conventional Gilts All Stocks Index Sub-Fund (20%)

See our Global Investments (up to 60% shares) Fund factsheet


Our ‘adventurous’ investment profile

For members who are prepared to accept more risk for the potential of increased growth and look for investments with more risk and volatility.

The ‘adventurous’ investment profile:

  • aims to maximise growth in the long term
  • moves to lower-risk investments as members approach retirement.

The fund that makes our ‘adventurous’ investment profile is our Global Investments (up to 100% shares) Fund which means members’ money is invested in:

  • UK Equity Index Sub-Fund (25%)
  • North America Equity Index Sub-Fund (25%)
  • Europe ex UK Equity Index Sub-Fund (25%)
  • Japan Equity Index Sub–Fund (12.5%)
  • Asia Pacific ex Japan Equity Index Sub-Fund (12.5%)

See our Global Investments (up to 100% shares) Fund factsheet

How to change your investment profile

Are you ready to choose the investment profile you feel suits you best?

Members, you can change your investment profile through your Online Account. 

Trying to decide which investment option suits you best?

If you’re a member of The People’s Pension and you’re trying to decide which investment option will suit you best, it’s important to know that Investment risk and investment return tend to be linked.

Usually the higher the potential investment return, the greater the investment risks.

The greater the risk, the more likely the investment is to go up and down in value over a short space of time – this is called volatility.

Remember also, the past performance of investments doesn’t guarantee or act as a guide to future performance. If you don’t make a choice, we’ll automatically invest your money in our ‘balanced’ investment profile (we also call this our default investment profile).

If you don’t make a choice, we’ll automatically invest your money in our ‘balanced’ investment profile (we also call this our default investment profile).

Investment changes approaching retirement

Each of our investment profiles gradually and automatically moves pension savings into lower-risk investments as members get closer to retirement.

We call this a 15-year glidepath, because it normally begins 15 years before a member’s selected retirement age.

How the glidepath works

Our 15-year glidepath is designed to safeguard members’ pension savings as they approach retirement.

Each of our investment profiles gradually and automatically moves members’ money into lower-risk investments as they get closer to retirement. This means their savings are less likely to suffer a large fall in value just when they want to use them.

The glidepath should result in a more predictable return, but could also mean that the fund grows less.

The glidepath normally begins 15 years before a member’s selected retirement age (SRA). So, if someone plans to retire at 65, we’ll start switching their investments when they’re 50.

How we move pension savings on the glidepath

As a member approaches retirement, we move their pension savings from one fund to the other on the following basis:

  Global Investments Fund Pre-Retirement Fund Years from SRA Global Investments Fund Pre-Retirement Fund
-15 93.75% 6.25% -7 43.75% 56.25%
-14 87.50% 12.50% -6 37.50% 62.50%
-13 81.25% 18.75% -5 31.25% 68.75%
-12 75% 25% -4 25% 75%
-11 68.75% 31.25% -3 16.67% 83.33%
-10 62.50% 37.50% -2 8.34% 91.66%
-9 56.25% 43.75% -1 0.00% 100%
-8 50% 50% 0 0.00% 100%

Your retirement age

Unless your employer has selected a retirement age for you, we’ll assume that you’ll take your pension savings at your State Pension age (SPA).

If your SPA includes a number of months, the retirement age we hold will be your birthday before your SPA. For example, if your SPA is 66 and 3 months, the retirement age we hold for you will be 66.

You can find out your State Pension age on gov.uk

How to change your selected retirement age

You can review and change your selected retirement age (SRA) through your Online Account…

But it’s impotant you know that changing your SRA could affect where your pension savings are invested, by moving them back or forward on the glidepath and into higher or lower-risk investments

Trying to decide which investment option suits you best?

If you’re a member of The People’s Pension and you’re trying to decide which investment option will suit you best, it’s important to know that the glidepath only applies to our 3 investment profiles.

If you choose your investment funds yourself, your money won’t automatically move into lower-risk investments as you approach retirement. That means you’ll need to make sure you regularly review the funds you’ve selected (and your attitude to investment risk) as you near retirement.

Our investment funds

Read about our investment funds and compare their past performance.

Responsible investment

We aim to be responsible investors of our members’ assets.

Investment downloads

Download our fund factsheets, Statement of Investment Principles and more.