Legal & General Pre-Retirement Fund

The Legal & General ('L&G') Pre-Retirement Fund aims to invest in assets that reflect the investments underlying a typical non-inflation-linked pension annuity product. There is no guarantee of full protection against investment driven changes to annuity prices, but investing in a similar way to annuity providers offers some protection.

Annuity providers usually invest in bonds and therefore the cost of annuities are likely to move in the same direction as bond prices. The Pre-Retirement Fund invests in bonds, specifically L&G's own Over 15 Year Gilts Index Fund and their AAA-AA-A Corporate Bond – Over 15 year - Index Fund.

Bond prices are generally less volatile than equities and are therefore deemed to be lower risk. However, lower risk generally means lower potential return therefore the Pre-Retirement Fund would be most suitable for those leading up to retirement and looking to purchase an annuity.

The Plan currently offers you a passive (index-tracker) fund managed by L&G. More information is available on the fund fact sheet.