The auto-enrolment solution for Northern Ireland
When a Member joins the Scheme, contributions are automatically invested in a combination of funds, depending on their age. This is known as the default Lifestyle Strategy.
If a Member does not wish to be part of the default Lifestyle Strategy they can make their own investment choices. This is known as the Freestyle Option.
The default Lifestyle Strategy funds and Freestyle Option funds are summarised below:
|Lifestyle Strategy Funds||
WPT Growth Fund
To provide investment growth through diversified exposure to the UK and overseas equity markets.Download our fund fact sheet
|WPT Volatility Reduction Fund||
A gilts and bonds fund which aims to provide long-term investment growth with lower short-term volatility.Download our fund fact sheet
|WPT Capital Protection Fund||
To provide stability and protect, in capital value terms, that part of the fund that is likely to be taken as tax-free cash.Download our fund fact sheet
|WPT Annuity Protection Fund||
To build up exposure to assets that are more closely matched to the investment related influences on annuity prices.Download our fund fact sheet
|WPT Diversified Fund||
To provide a long term investment return similar to equities, with lower short term volatility.Download our fund fact sheet
If you do not choose to invest in any of the 5 funds, the contributions made into your Member’s Account will be invested in the default Lifestyle Strategy.
The default Lifestyle Strategy means that contributions are invested in a combination of funds from joining the scheme until retirement. It is designed to meet the changing investment needs of a typical pension investor as they progress through life towards their Normal Retirement Age.
The foundation phase aims to provide both stability and investment growth. Members’ funds are split 50/50 during this phase between the WPT Growth Fund and the WPT Capital Protection Fund.
The growth phase aims to maximise the potential for growth through 100% equity investment. The WPT Growth Fund is used for the growth phase.
The protection phase is based on the assumption that the Member retires at 65 years. The protection phase starts at age 50 and is completed at age 65. To spread market timing risk, quarterly switches are in place to switch Members’ assets from the WPT Growth Fund to a combination of the WPT Growth Fund, the WPT Volatility Reduction Fund and the WPT Capital Protection Fund. At retirement, Members’ funds will be invested 100% in the WPT Capital Protection Fund, as follows.
|Age||Growth Fund||Volatility Reduction Fund||Capital Protection Fund|
|30 & below||50.0%||0.0%||50.0%|
|32 to 49||100.0%||0.0%||0.0%|
If Members choose to retire before the Normal Retirement Date of age 65, they may not be subject to the 15 year automatic switching transition during the protection phase.
If Members do not wish to be part of the default Lifestyle Strategy they can make their own investment choices from the 5 investment funds. This is known as the Freestyle Option.
It is important to note that selection of the Freestyle Option means that Members will not be part of the default Lifestyle Strategy. Therefore, funds will not be subject to the automatic age related switching process. Members should ensure that the fund(s) selected reflect their acceptance of investment risk over time.
Members who have chosen a Freestyle Option are entitled to switch investments twice per annum without an administration charge. Subsequent requests within a 12 month period may incur a charge, a decision which lies with the Trustee. Members may choose to switch into the Lifestyle Strategy at any time. Simply download and complete the Investment Switch and Redirection form and return it to us.
It is important that Members take time to understand how their money is invested and to keep their investment choices under review. If they are unsure about their investment options they may wish to seek independent advice. Details of financial advisers can be found at www.unbiased.co.uk or telephone 0800 023 6868.
The value of a pension pot depends on contributions paid in, investment performance, charges and the cost of buying pension on retirement (if applicable). Over the years the value of investments can go up and down. Even if the value goes down in the short term, it would be expected to recover in the long term.
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