Putting your money to work

Your investment choices have a big impact on how much your pension fund will be worth when you retire – and therefore how much pension income you can expect.

The lifestyle option

When you join the Plan, your money is automatically invested in the lifestyle continued growth option. This is the default investment strategy which is used by the majority of members.

When you are within 10 years of your target retirement age, you can then choose a specific lifestyle option to invest in that targets the way you want to take your money at retirement: annuity, income drawdown or cash. If you don't make a decision, your pension fund will remain invested in the default lifestyle continued growth option, which aims to put you in the right position at retirement so that you can make a choice that works for you.

What does lifestyling do?

When you’re a long way from retirement, your pension fund is invested in funds which aim to maximise investment growth. Then, in the years as you get closer to your target retirement age, your money is automatically and gradually switched from growth investments (equities, also called shares) into less volatile investments like bonds and cash. This helps protect the value of your pension fund from any sudden changes in market conditions when you’re close to retirement.

Your target retirement age

It’s really important to choose a target retirement age if you’re using the lifestyle option, because the switching process begins based on when you plan to retire. If you haven’t selected a target retirement age, we’ll assume that it’s the same as your State pension age. You can change your target retirement age at any time.

If you’ve left your target retirement age at 68, but you’re actually hoping to retire earlier, it could mean that your pension fund is still invested in a growth fund too close to your retirement. If there’s a sudden downturn in the financial markets, your retirement savings might not have enough time to recover.

Similarly, if you’ve chosen age 55, but find you want to continue working a bit longer, your investments will have started switching into less volatile funds too soon and you might miss out on some investment growth.

The self-select funds

As an alternative to the lifestyle option, you may prefer to make your own investment choices using the range of 12 self-select funds. These are suitable if you have the time and knowledge to manage your own investments. You can make changes to your investments at any time via Manage my pension.

You can read more about all your investment options in our investment guide or watch the video to understand more about investment risk.

The following funds are available in the self-select range:

Cummins AAA-AA-A corporate bonds all stocks index fund
Cummins Accelerated growth fund  
Cummins Cash fund 
Cummins Ethical global equity fund 
Cummins Moderate growth fund
Cummins Pre-retirement fund 
Cummins Property fund 
Cummins UK equity fund 
Cummins World emerging markets equity fund 
Cummins World equity fund (hedged)
Cummins World equity fund (unhedged)
HSBC Islamic titans fund  

Your session will expire in xx.xx. Do you wish to Continue or Log Out
Your session will expire in xx.xx
Continue or Log Out