The value of all investments can go down as well as up and could be worth less than was paid in. We recommend that you regularly review your investments to make sure they remain appropriate for you and they're on track to meet your goals.
What are Investment Pathways?
Investment Pathways give you a simple choice from the four most common ways that people choose to take their retirement savings. These are ready-made investment options where experts manage the money in your pension plan based on what you want to do with the money left in it.
So you just need to make sure the pathway you choose reflects how you intend to take your money, whether that’s leaving it invested, setting up a guaranteed income (an annuity), choosing a flexible income or taking some or all of it as cash.
You can see the four main ways to take your money and the options we offer in the table below.
|Your plans||Your options|
I have no plans to take my money in the next five years
I plan to use my money to set up a guaranteed income (annuity) within the next five years
I plan to start taking my money as a long-term income within the next five years
I plan to take out all my money within the next five years
How do the different Investment Pathways options work?
Standard Life Investment Pathway Option 1
By choosing the Standard Life Investment Pathway 1 Fund, you won’t be planning to access your money in the next five years.
It’s designed for the long-term, so more than five years, to aim to grow your money. You might see the value of your money going down as well as up a lot in the short term.
Standard Life Investment Pathway Option 2 Fund
By choosing the Standard Life Investment Pathway 2 Fund, you’ll be planning to buy a guaranteed income (annuity) in the next five years.
It’s designed to help lessen the impact of changes in annuity rates so when you come to buy a guaranteed income, you’re less likely to be affected by changes in the cost of buying one. You may still see the value go down as well as up, sometimes by a lot.
Standard Life Investment Pathway Option 3 Fund
By choosing the Standard Life Investment Pathway 3 Fund, you’ll be planning to start accessing your money within the next five years and for it to last longer.
It’s designed for the long-term, so more than five years, to aim to grow your money while offering some stability. You may still see the value of your money going down as well as up in the short-term
Standard Life Investment Pathway Option 4 Fund
By choosing the Standard Life Investment Pathway 4 Fund, you‘ll be planning to take all of your money in the next five years.
It’s been designed with this in mind so you could expect it to aim for relatively stable returns. Its value may still go down as well as up.
Important things to think about
It’s important that you understand what you’ll need your money to do for you in retirement. How you choose to take your money will change the way you need to invest and will depend on your personal circumstances.
The relationship between how much money you’ll need in retirement and how much you’ve saved into your pension savings ahead of retirement is key. It can help determine the types of gains you might need to make or how much loss you’re able to accept from your investments.
Making these kinds of decisions can be difficult and you might find it helps to speak to a financial adviser. Please note; there will likely be a cost involved for this
Invest in an Investment Pathway through a pension plan
Questions about Investment Pathways
What happens to my Investment Pathway after five years?
Nothing. If your plans for the money left in your pension are the same, you don’t need to do anything. You can keep the same Investment Pathway option, bearing in mind that both your investment choice and how much money you take out can affect how long your money will last. That’s why it’s a good idea to get into the habit of reviewing your choice on a regular basis to make sure that it still meets your needs.
What if the Investment Pathway I have chosen is no longer right for my plans?
You can change your investment choice at any time. So, if your plans have changed since you chose your Investment Pathway, you don’t need to remain in an investment option that might no longer be right for you. Reviewing your investment choice regularly could help you decide if you need to make a change.
Do I have to remain in an Investment Pathway for five years?
No. We’ve designed our Investment Pathways with a five-year investment timeframe in mind, however you can change your choice at any time. If your plans have changed since you chose your Investment Pathway you should review your investment choice to see if it’s still right for you.
Can I choose the risk level of my Investment Pathway?
No. Investment Pathways are designed around the way that you plan to take your money rather than how much risk you’re prepared to take.
Is an Investment Pathway the best option for me?
The choice is yours. Our Investment Pathways have been designed as a simple choice for you. However, everyone’s personal circumstances are different so it’s worth looking at other investment options we provide that might better suit your needs. And, you can always shop around by comparing different product providers and investment options.
Do I have to choose an Investment Pathway?
No. Investment Pathways are just one option. If you are a confident investor and have the time and knowledge, you can choose and manage your own investments using our full fund range.