Investing your pension savings
How you choose to invest your pension savings in the Aon OnePlan is an important decision that can make a real difference to the value of your account and the level of retirement benefits it will provide for you.
It’s important to take the time to understand your options and decide what is right for you.
Below is a summary. For full details, refer to the Investment Guide on the Aon OnePlan member website via the 'My Account' page.
The default investment strategy
If you don’t have the time, desire or knowledge to make regular investment decisions, the default investment strategy is likely to be suitable for you.
The default strategy is the Aon Managed Retirement Pathway Funds, which target drawdown.
This aims to maximise growth in your account while you are a long way from retirement.
As you get close to your target retirement age, your pension savings automatically move into investments which aim to be suitable for you if you intend to take your pension savings by income drawdown.
Your Aon OnePlan account is invested this way unless you’ve actively made a different choice.
Your investment options
You have a few different options to consider for investing your Aon OnePlan account:
- You can choose a ‘Do it for me’ investment approach using one of the Retirement Pathway or Core Retirement Pathway funds (this includes the default investment strategy).
- You can take a more hands-on role by using ‘Give me options and information to help me choose’.
- You can combine these two approaches.
There are two versions of this range of funds available to members . . .
- Retirement Pathway; and
- Core Retirement Pathway.
Retirement Pathway funds
- The Retirement Pathway funds have higher charges and invest in both active and passive funds.
- Retirement Pathway funds work by initially aiming to maximise growth in your account while you are a long way from retirement.
- As you get closer to retirement, the investments normally automatically switch into lower risk funds that are better aligned to how you might take your benefits.
Core Retirement Pathway funds
- The Core Retirement Pathway funds have lower charges and invest mainly in passive funds.
How do these work?
There are three types of Retirement and Core Retirement Pathway funds, broadly designed to match the retirement options you have with your account:
- Drawdown (the Retirement Pathway funds is the default investment strategy)
- Annuity
- Cash
Important
The Pathway to Annuity and Pathway to Cash options are only available around seven years before your target retirement age.
Up until around this point, all Retirement Pathway funds and all Core Retirement Pathway funds are invested in the same way.
The Retirement Pathway Fund option may be the right choice for you if . . .
. . . you have a clear idea how and when you plan to take your benefits, but you don’t want to take a hands-on role with how your account is invested.
This approach means you choose the funds you’re invested in yourself – giving you complete freedom. You can invest all your account in one fund or spread your investments across multiple funds. It’s up to you.
Unlike the Retirement Pathway or Core Retirement Pathway funds, with this approach, your investments aren’t switched automatically into lower risk funds as you approach your target retirement age.
You should keep a close eye on how your chosen investments are performing over time.
Finding out more
You can get details of the funds that are available from the Investment Fund factsheets page and the Investment Guide on the Aon OnePlan member website via the 'My Account' page.
This approach may be the right choice for you if . . .
. . . you’re comfortable keeping a regular check on how your investments are performing and making changes as and when you feel it’s necessary.
You can choose a combination of the two approaches if you wish.
A combined investment approach may be the right choice for you if . . .
. . . you want most or some of your account managed for you, but you want more control over the balance of your account.
Important!
For full details of your investment options, refer to the Investment Guide on the Aon OnePlan member website via the 'My Account' page.
Take time: consider
Investments are not guaranteed. Performance can go down as well as up and you may not get back what you invest.
If you invest in overseas markets, changes in currency exchange rates may cause the value to rise or fall.
Some overseas funds invest in developing markets where arrangements around regulation, dealing, liquidity and custody may be less secure than in the UK. Such funds can therefore carry greater risk.
The investment information provided is for guidance only. It is not intended to constitute financial or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to your own circumstances.
Important: If you need advice
If you’d like advice, you should talk to a financial adviser.
See our 'getting financial advice' page for more information.
The law doesn’t allow the Trustee, anyone associated with the ARP or anyone at Aon to advise you about what investment decisions you should make.