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.

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 find full information about the funds used in this approach at www.aviva.co.uk/pensionfund-info

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 lifestyle approach.

The stakeholder mixed investments lifestyle approach 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 lifestyle approach leaflet.

Objectives

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 option 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 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. As you get closer to retirement, we’ll automatically move your money into different funds. We do this to help protect the level of income you could get when you retire.

Stage 1

To begin with, we invest all your payments into the Mixed Investment (40-85% Shares) Fund. This will continue until five years before your chosen retirement age.

Stage 2

When you’re five years from your chosen retirement age, we’ll continue to invest all new payments into the Aviva Mixed Investment (40-85% Shares) Fund at first. We’ll also gradually start moving your money (including these new payments, once invested) across to the Aviva Long Gilt Fund and the Aviva Deposit Fund on a monthly basis. By the time you get to a month before your chosen retirement age, 75% of your pension pot will be invested in the Aviva Long Gilt Fund, with the remaining 25% in the Aviva Deposit Fund.

If there’s less than five years until your chosen retirement age when you start using the approach:

In this situation, your new payments won’t be invested in the Aviva Mixed Investment (40-85% Shares) Fund. Instead, 75% of your money will be invested straight into the Aviva Long Gilt Fund, with the remaining 25% going into the Aviva Deposit 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.

You can find full information about the funds used in this approach at www.aviva.co.uk/pensionfund-info

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 first 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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