Target of 3% above inflation
We give each of our funds a risk rating, ranging from 1 (lowest volatility) to 8 (highest volatility). The higher the volatility, the greater the potential for a fund to go up and down in value. We review our risk ratings each year so they may change over time.
Lifestyle has been designed to automatically manage Members’ investments and gradually reduce risk from age 50 up to 75.
This strategy is intended to achieve strong investment growth in the Member’s early years of employment. It then progressively switches into other asset classes to reduce exposure to the stock market near retirement age. With working patterns changing and retirement ages variable, the Lifestyle strategy allows Members the freedom to access their savings anytime from age 55, in the knowledge that their investments are continually monitored and adjusted up to the age of 75.
The Lifestyle strategy aims to achieve this pattern by moving through three funds with reducing risk levels. The funds are made up of a blend of asset classes, including stocks and shares, corporate and government bonds, and property. These blends are designed by Crystal and managed by Legal and General Investment Management (LGIM). These funds are given an implicit ESG (Environmental, Social & Governance) score of at least 50%, using LGIM’s Future World (FW) Range.
The chart outlines the overall strategy, reflective of an individual’s period of saving.