To help make your investment decision seem less daunting, we've designed nine Lifecycle options.
Each option is based on your preferred attitude to investment risk and a planned retirement outcome. All you need to do is choose the combination right for you.
If you have not chosen or been told otherwise, your LifeSight Account will be automatically invested in the Lifecyle option: Medium Risk Drawdown. You can see how your investments are switched as you move towards retirement in the chart below.
Your investments switch to different funds as you approach retirement depending on whether you want to use your Account for drawdown, to buy an annuity or take your Account as cash (see the retirement options pages to find out more about drawdown, annuities and cash).
LifeSight Medium Risk Drawdown Strategy (the default)
This strategy has been created by the Trustee and is the 'choose for me' investment option. It has been picked to give you flexibility when you reach retirement.
Under this strategy you will be solely invested in the LifeSight Equity fund until 25 years before your Target Retirement Age. From then, your LifeSight Account will gradually move into the LifeSight Diversified Growth fund (which invests in a range of assets to diversify your account and protect against market volatility).
From 5 years from your Target Retirement Age, your LifeSight Account will gradually move more of your money into the LifeSight Cash fund. This will further reduce volatility and provide a level of capital protection.
At your Target Retirement Age, your LifeSight Account will consist of 70% in the LifeSight Diversified Growth fund and 30% in the LifeSight Cash fund.
Nine Lifecycle options
The Lifecycle options are your 'help me choose' investment options. Each of the nine Lifecycle options invests in a mix of the four LifeSight 'building block' funds: LifeSight Equity, LifeSight Diversified Growth, LifeSight Bonds and LifeSight Cash.
Lifecycle begins to switch into funds appropriate for your preferred retirement option i.e. from the 'Grow' phase to the 'Prepare' phase, around 15, 10 or 5 years before you plan to retire (depending on the level of investment risk attached to the investment option you have chosen). With that in mind, you need to consider the retirement option that suits you best at least 15 years before you plan to retire.
You can use the Investment Guide to help you think about which of these strategies is right for you.
Please note that your default retirement age is 65. If you're invested in a Lifecycle Strategy and you're planning to retire at a different age then you can change your target retirement age. You need to log in to your account with LifeSight to do this.