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Lower Risk/Return

This arrangement uses the same underlying funds as the Balanced Lifestyle arrangement, but with a longer switching period in the lead up to retirement.

Your assets would begin to be switched from the BlackRock Diversified Growth Fund into a combination of the Legal & General Pre Retirement Fund and the Legal & General Cash Fund in the 10 years leading up to retirement.

The additional 5 years switching period, when compared to the Balanced Lifestyle arrangement, are what give this arrangement the potential to be lower risk. By investing in the stability stage rather than the growth stage for 5 years longer, the risk of your assets being significantly impacted by market conditions, i.e. falling close to retirement if the market takes a down-turn, can be reduced. The offset to this is that you will have less time invested in the growth stage; therefore you may have less time to benefit from the higher returns that the BlackRock Diversified Growth Fund aims to provide.

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.