The Retirement Pathway option is for members who do not want to take decisions about which asset class is right for them.
Retirement Pathways are pre-set investment strategies which automatically switch investment as you approach retirement.
You have a choice of three pathways, which broadly match the options you will have at retirement.
- Retirement Pathway to Annuity
- Retirement Pathway to Cash
- Retirement Pathway to Drawdown
The ‘default’ investment option
If you do not make your own investment selection, your contributions will automatically be invested in the Plan’s ‘default’ option, which is the Retirement Pathway to Drawdown.
Please remember that going into the Retirement Pathway to Drawdown, even if you have done so by default, is a decision in itself.
Your target retirement age
When you join, your policy will be set up with a target retirement age of 65, though you can change this if you wish.
Your target retirement age is only an indication of when you intend to retire. This information does not represent an undertaking by you and is strictly confidential.
If you are invested in a Retirement Pathway, it is important that you review your target retirement age from time to time and notify the Plan administrators as soon as possible if you want to change it.
Otherwise, the automatic fund switching that is a feature of the Retirement Pathways may start at the wrong time - too late, and you could end up being exposed to unnecessary risk or too early, and your investments may miss out on potential higher returns.
How to change your target retirement age
You can change your target retirement age on the Plan website. Simply log in and follow the on-screen instructions. Alternatively, you can fill in and return an Investment Option Form. (You can print off a form from the Flex Portal.)