Defined contribution pension
Your pension contributions are invested and there is a range of investment funds available.
If you want to choose your investment funds yourself, a selection of funds is available. Each fund is different and the risk profile and investment return of each fund is also quite different.
Before you decide what funds you should invest in there are a number of things you should think about:
- How long before you plan to retire
- Are you comfortable taking some risk
- If you want to take little or no risk, do you understand that your fund might not keep pace with inflation
- Do you have other savings or pension schemes that will give you a good pension
- Have you worked out what income you need in retirement and what investment returns you will need to get there
If you do not want to be actively involved in choosing an investment fund you can opt for the “Lifestyle Fund”. If you make no choice this is the default fund where your contributions will be invested.
The Lifestyle Fund aims to maximise returns in your younger years, and protect you from investment fluctuations as you approach retirement. The fund invests in equities until you are six years from your normal retirement date. As you approach retirement your funds are then progressively switched from equities to bonds and cash.
If you want to change your fund you can fill in a change of contribution rate/investment form.
BlackRock fund factsheets
Below is a quick link to the factsheets for each of the funds available. Please note the factsheets are held on the BlackRock website.