AEGON BLACKROCK LIFEPATH OPTIONS
If you are not comfortable choosing your own investments, you could opt to choose from the Aegon BlackRock LifePath options. These do not provide a guaranteed return and do involve investment in higher risk investment types. However, the Aegon BlackRock LifePath options have been designed to manage some of the risks for you as you approach retirement.
An Aegon BlackRock LifePath investment option provides a mechanism for matching the asset allocation of your pension assets to your likely investment objectives at different stages of your working life. LifePath changes the way that investments are held based on your Normal Pension Date. The changes will happen automatically depending on the Aegon BlackRock LifePath or LifePaths which you have chosen.
During your early career (say, 35+ years from retirement), the Aegon BlackRock LifePath will be invested in growth assets, such as equities (company shares). Over the long term, these have been shown to provide higher growth than other types of investments, but they are more volatile and can go up and down in value suddenly. To spread the risk, LifePath invests in equities across many different regions and countries and also invests in other types of assets, such as commercial property and commodities.
When you enter your mid-career phase (say, between 35 and 10 years from retirement), the Aegon BlackRock LifePath will gradually reduce its investments in growth assets and introduce a mix of less volatile assets, such as bonds and gilts. This aims to protect your account from the ups and downs associated with growth assets.
Then, when you get to within 10 years of your retirement date, the Aegon BlackRock LifePath will switch into a final investment mix that depends on whether you chose Aegon BlackRock LifePath Flexi, Aegon BlackRock LifePath Capital or Aegon BlackRock LifePath Retirement.