Aegon is overhauling its funds for workplace pensions to offer equity-heavy multi-asset plans, in a move away from the industry standard of switching those nearing retirement into ‘safe-haven' cash and gilts.
The strategy will see around a quarter of an upcoming retiree's investment held in equities, - an asset traditionally seen as too high risk for those approaching retirement - with around 35% in corporate bonds, a small amount in property and the rest in index linked gilts. It will be used for Aegon's default workplace savings fund range, catering for savers who don't take active investment decisions as they near retirement. Aegon said its ‘lifestyle' approach offers a better risk and return for retirees using the government's liberalisation of pensions to choose drawdown or change the...
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