LIFESTYLING
Many people want to try to preserve the value of their pension investments as they approach retirement – and ‘Lifestyling’ is an easy way to help with that.
What is ‘Lifestyling’?
Lifestyling is a process that adjusts the risk balance of your pension over time, helping to shelter your investments from falls in the stock market while still offering the potential for growth when markets rise. It all happens automatically, but you can take control of your investments at any time. Although the aim of Lifestyling is to offer greater stability for your pension, it’s important to remember that all investments can fall as well as rise in value, so you could get back less than you put in.
What is changing?
Under the current arrangement, funds will be automatically converted to cash over a period of 5 years prior to your selected retirement age. However, cash is affected by inflation. This means that over time, the value of cash in your pension is being eaten away as goods and services become more expensive. Under the new arrangement, we’ll move your investments gradually into the BlackRock MyMap4 fund during the ten years approaching your selected retirement age. This is done by selling a proportion of your current fund investments automatically each month and reinvesting the proceeds. This fund has a balanced-risk profile and aims to preserve the value of your investments while offering a greater potential to combat inflation compared to cash. We’re also increasing the duration of the Lifestyling period from 5 years to 10 years. This is to try and give a smoother transition to the new fund and seeks to achieve a risk balance for your investments as you approach retirement. Read our factsheet for more information on Lifestyling and the BlackRock MyMap4 fund.
Read the video transcript This video isn’t personal advice. All investments and income can fall as well as rise in value, so you could get back less than you invest. If you’re unsure of the suitability of an investment or course of action for your circumstances, please seek advice. More information on this topic and all areas of the new Default Investment Arrangement changes can be found in our FAQ document.
