Which funds can you invest in?

Aviva's Stakeholder Pension offers you a wide variety of pension funds in which to invest your pension payments. You'll need to choose a fund or funds that reflect your attitude to risk and return and you can switch between funds to accommodate any changes in your personal circumstances.

There are other investment options available, please visit our fund centre for full details.

Please remember, the value of your pension pot can go down as well as up, and is not guaranteed. This means you might get back less than the amount paid in.

You can choose your funds - or let us help you

With a Stakeholder Pension, you can either select the fund(s) that you want to invest in yourself or, if you prefer not to choose your own fund(s) we will invest your money in the Stakeholder Mixed Investments Annuity Lifestyle approach.

The Stakeholder Mixed Investments Annuity Lifestyle approach is our default approach and is a pre-determined investment path on which, at various stages, we’ll automatically move your money between carefully chosen funds. In other words, its a way of investing for your retirement without having to be too hands-on in managing your pension plan. Full details are provided in our Stakeholder Mixed Investments Annuity Lifestyle approach leaflet.

Objectives of the Stakeholder Mixed Investments Annuity Lifestyle approach

This approach aims to provide growth in the early years, although the value of your pension pot could fluctuate. It is designed to prepare your pension pot for:

  • buying an income for your lifetime (known as an annuity) at your chosen retirement age.

Please note: At your chosen retirement age you will have a number of retirement options, (even if you remain invested in this lifestyle approach), however this lifestyle investment approach has been designed to prepare for the particular retirement options shown above.

This approach is not designed to prepare for:

  • taking some of the money as and when you need it, either as cash sums or as flexible income (known as income drawdown)
  • withdrawing all the money in your pension pot or
  • leaving your money where it is and making your choices later.

How it works

This investment approach goes through up to two stages, depending on how long you have left before your chosen retirement age when you start using it.

If you have more than 5 years before your chosen retirement age:

Stage 1: at the start

This approach invests all your payments in a medium risk fund (the Aviva Mixed Investment (40-85% Shares) fund), which aims to provide growth.

Stage 2: five years before your chosen retirement age

We’ll continue to invest all your new payments into the:

  • Aviva Mixed Investment (40-85% Shares) fund
    We’ll also gradually move your new and existing investment across, month by month, into the:
  • Aviva Long Gilt fund – a medium to high risk fund which aims to help protect the level of income you could get when you reach your chosen retirement age.
  • Aviva Deposit Fund – a low risk fund which aims to help protect the portion of your pension pot that can be taken tax free

So a month before you retire, 75% of your total pension pot will be invested in the Aviva Long Gilt fund and 25% in the Aviva Deposit fund.

Please note:

If there’s less than five years until your chosen retirement age when you start your plan, all your new payments will be invested 75% into the Aviva Long Gilt fund and 25% into the Aviva Deposit fund. They won’t be invested in the Aviva Mixed Investment (40-85% Shares) fund.

Please remember, the value of your pension pot can go down as well as up, and is not guaranteed. This means you might get back less than the amount paid in.

Whether this approach is right for you will depend on your individual circumstances, so we recommend you speak to a financial adviser.

You can find full information about the funds used in this approach at fund centre

The diagram below shows how your payments are invested over the two stages.

We’ll write to you before we start moving your money – and you can change your investment choice at any time.

For more information visit our online investment centre at www.aviva.co.uk/retirement/fund-centre/other-investment-options.html

How the approach works

Stage 1
At the start (but only if you have more than 5 years before your chosen retirement age)
Stage 2
Five years before your chosen retirement age (if you have been using this approach prior to this time)
All payments All new payments*
Invested in the Aviva Mixed Investment (40-85% Shares) fund. Initially invested in the Aviva Mixed Investment (40-85% Shares) fund. Then moved monthly into the Aviva Long Gilt fund and Aviva Deposit fund.
The rest of your pension pot
Moved monthly into the Aviva Long Gilt fund and Aviva Deposit fund.
* If there’s less than five years until your chosen retirement age when you start your plan:
- New payments will be invested 75% into the Aviva Long Gilt fund and 25% into the Aviva Deposit fund.
- They won’t be invested in the Aviva Mixed Investment (40-85% Shares) fund.

The risks associated with different investments

Risk is one of the most important factors when it comes to investing your money for the future. The key is to find the right balance between the amount of risk you're willing to take and the potential return you're likely to get over your investment period.

If you have a long time before you retire, you might be prepared to take a bigger risk, but as you get closer to retirement you might want to limit the amount of risk you take. With the help of your financial adviser, careful investment planning can help you to manage your risk/return effectively.

So what is meant by risk? Most funds carry the risk that their value could drop below the original value you invest at. This risk can be measured by the ‘volatility' of the fund, or the amount of ‘ups and downs' in its value. Typically, the more the value of an investment fund fluctuates, the higher the potential may be for gains or losses - often referred to as its risk/return. Understanding your attitude to risk/return is important.

For more information about the level of risk/return take a look at our page which funds are right for you.

Your choice of pension investment funds

Our Fund Centre gives you all the information you need about our funds. From daily prices and performance to details about charges.

What's the next step?

The next step is to talk it through with a financial adviser to make sure it's the right pension plan for you. If you don't have an adviser, you can find one in your area at unbiased.co.uk.

If you and your adviser agree that an Aviva Stakeholder Pension is right for you, your adviser will provide you with all the information you'll need to apply. This will include:

  • A key features document, which explains the aims and risks of the plan and answers some frequently asked questions.
  • A personal illustration, which gives you an estimate of what your investment in the pension plan may be worth at your chosen retirement age.
  • An application form, which should take just a few minutes to complete.

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