Both alternative Lifestyle Profiles initially invest entirely in equities until you are 10 years from your Selected Retirement Age. However, once you are within 10 years of your Selected Retirement Age the gradual switching of assets commences into bonds and cash (as reflected in the charts below), so that your exposure to equities becomes less and less the closer you are to retirement.
The two Lifestyle Profiles are designed to have very similar outcomes for members. The main difference between them being that:
- The active version employs active fund managers who seek to beat the return expected from the market; whilst
- The passive version uses fund managers who look to track the expected market return.
PSPS Equity to Bonds Lifestyle — Active
Aims: To target higher returns whilst members are more than 10 years from retirement by investing in equities that is actively managed and then progressively switches, into bonds and cash consistent with annuity purchase at retirement.
Overview: The Lifestyle has a 100% allocation to equities that are actively managed up to 10 years from retirement followed by a gradual switch into the PSPS Corporate Bonds — active, the PSPS Index-Linked Gilts — active and the PSPS Cash funds.
Suitable for:
- Members who are further away from retirement seeking exposure to higher returning investments initially with less investment risk as their term to retirement reduces or
- Members closer to retirement who wish to take their Scheme benefits as either a tax-free lump sum and/or annuity purchase.
For more information see the Investment Guide in the Document library.
PSPS Equity to Bonds Lifestyle — Passive
Aims: To target higher returns whilst members are more than 10 years from retirement by investing in equities that are passively actively managed and then progressively switching, from 10 years to retirement, into bonds and cash consistent with annuity purchase at retirement.
Overview: The Lifestyle has a 100% allocation to equities that are passively managed up to 10 years from retirement followed by a gradual switch into the PSPS Corporate Bonds — active, the PSPS Index-Linked Gilts — active and the PSPS Cash funds.
Suitable for:
- Members who are further away from retirement seeking exposure to higher returning investments initially with less investment risk as their term to retirement reduces; or
- Members closer to retirement who wish to take their Scheme benefits either as a tax-free lump sum and/or annuity purchase.
For more information see the Investment Guide in the Document library.
