The FutureWise strategy is delivered through a Target Date Fund (TDF) structure. We have a series of TDFs that target dates every five years, such as 2030, 2035 and 2040. This means pension savings are invested in a fund (a Target Date Fund) that is carefully managed by strategic asset allocation and the general glidepath that each TDF will follow to their target date.
Unlike traditional lifestyle strategies, members’ savings are invested in one all-encompassing fund that has a single charge that applies for the life of the fund. This means that we can tactically increase or decrease the allocation to certain investments and delay or expedite the process of adjusting members' investments to further diversify (within prescribed bandwidths) when we believe doing so can add value or better manage risk. Each TDF fund is dynamically managed to suit economic and market conditions until - and through - retirement for members to keep their pension savings invested and taking regular income from it using an income drawdown option. In 2024, there are 11 Target Date Funds and more will be launched over the coming years. The funds range from 2025 to 2070, with dates every five years. Members do have the flexibility to change their retirement date when savings will move into a fund with a different target date. Around three years after the TDF reaches the target date, the member’s money is automatically moved into the FutureWise Target Date Retirement Fund.
This offers:
- Simplicity and clarity: Having one single fund makes it much easier to monitor investments. In addition, PlanViewer, our easy-to-use online site, helps members to understand how their money is invested, charges, risk and its performance.
- Future-proofing: The FutureWise Target Date Funds are being managed in close collaboration with BlackRock. The underlying funds will be established and managed by BlackRock in accordance with fund specifications defined by Fidelity. Because the glidepath, as well as the portfolios, are delegated to Fidelity, it enables future innovation and flexibility to change strategies and access to broader investment opportunities.
- Efficiency and value: The FutureWise TDF structure is easier to administer and creates operational, tax and investment efficiencies that we can pass on to members.
We know retirement plans can change. Our approach gives your members the freedom to start taking their benefits when they choose, together with the confidence that their pension contributions are being managed to optimise outcomes. Remember that withdrawals from a pension can normally be taken from age 55. This is due to rise to 57 in 2028.
Overview
