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Higher Risk/Return

This arrangement also uses the Legal & General Pre Retirement Fund and the Legal and General Cash Fund in the stability stage. The switch occurs over a 5 year lead up to retirement, like the Balanced Lifestyle arrangement. The key difference for this arrangement is the underlying funds invested in during the 'growth' stage.

The BlackRock Diversified Growth Fund is still used in the growth stage, but in addition to a Gartmore Global Focus Fund and a Legal & General Global Equity (50:50) Fund. The split between these funds is also gradually rebalanced during the 5 year lead up to retirement.

The higher risk element of this arrangement comes from the two Equity Funds used during the growth stage, which are more sensitive to market movements. This also means that they contribute to potentially higher returns. For example, a market down-turn might cause the value of the assets invested in Equity Funds to drop more in comparison to the BlackRock Diversified Growth Fund. The opposite could also be true should the market perform well.

For more information on investment risk please click on this link.

If you are considering investing in this arrangement then please visit the interactive tools to see how this might impact the value of your retirement account.