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Lifestyle profiles

A Lifestyle Profile is a good option to choose if:

  • You do not want to make your own decisions on your fund selection; or
  • You do not feel comfortable managing your own investments on a day to day basis.

The Lifestyle Profiles provide you with a ready-made investment strategy. Initially it will invest in higher risk funds, expecting to achieve a higher return.

Then gradually, as you get nearer to your Selected Retirement Age, your investments are switched to lower risk funds to protect the capital value of the fund from large fluctuations in value.

You are not required to actively manage your funds, however the Trustee still recommends that you do review the matter regularly to ensure that the Lifestyle Profile remains the most suitable choice for your circumstances. There are three Lifestyle Profiles available to choose from, each carefully designed to match different retirement strategies.

The Lifestyle Profiles use your Selected Retirement Age to determine when funds switches should take effect. It is therefore important to regularly consider the appropriateness of the date you have specified as your Selected Retirement Age. If you do not choose a Selected Retirement Age then it will usually be assumed to be 65 unless you are notified otherwise.

The PSPS Multi-asset Lifestyle Profile

The Trustee has designed this profile as a ‘whole of working life’ ready-made strategy for those members who wish no involvement in choosing their investment strategy.

If you have not decided how to invest your Personal Account, it will be invested using this Lifestyle Profile. Like the alternative Lifestyle Profiles available to you, the PSPS Multi-asset Lifestyle profile initially invests in higher risk funds, gradually transitioning to lower risk funds as you approach your Selected Retirement Age.

Multi asset lifestyle glidepath

Aims

To target higher returns whilst members are far from retirement by investing in equities and then progressively switching into a lower risk, more diversified portfolio. From 15 years to retirement, there is a gradual switch into a more cautious diversified investment strategy so that when members are within one year of their Selected Retirement Age, the majority of assets are held in lower risk funds.

Overview

The Lifestyle Profile invests 100% in equities up to 15 years from retirement followed by a gradual switch into the PSPS Diversified Growth — active fund and the PSPS Diversified Liquid Alternatives - active fund. From 10 years to retirement, there is a gradual switch of a proportion of the strategy into PSPS Total Return Bond Fund and then the PSPS Cash — active fund.

Suitable for

Members who are further away from retirement seeking exposure to higher returning investments initially and less investment risk as their term to retirement reduces; or

Members closer to retirement who do not know how they will take their benefits and those who expect to take their benefits in the form of a tax-free lump sum or switch to another registered pension scheme offering income drawdown.

The PSPS Annuity at Retirement Lifestyle

Annuity

Aims

To target higher returns whilst members are far from retirement by investing in equities and then progressively switching into a lower risk, more diversified portfolio. From 15 years to retirement, there is a gradual switch into a more cautious diversified investment strategy, targeting Annuity, so that when members are within one year of their SRA, the majority of assets are held in lower risk funds.

Overview

The Lifestyle Profile invests 100% in equities up to 15 years from retirement followed by a gradual switch into the PSPS Diversified Growth — active fund and Diversified Liquid Alternatives — active fund. From 10 years to retirement, there is a gradual switch to a proportion of the strategy into PSPS Total Return Bond — active, PSPS Corporate Bonds— active, PSPS Fixed Interest Bonds — active and then the PSPS Cash — active fund.

Suitable for:

  • Members who are further away from retirement seeking exposure to higher returning investments initially and less investment risk as their term to retirement reduces; or
  • Members closer to retirement who expect to use their Personal Account to buy an annuity policy (or similar) to provide a regular fixed income in retirement.

For more information see the Investment Guide in the Document library.

The PSPS Cash at Retirement Lifestyle

Cash

Aims

To target higher returns whilst members are far from retirement by investing in equities and then progressively switching into a lower risk, more diversified portfolio. From 15 years to retirement, there is a gradual switch into a more cautious diversified investment strategy, targeting cash withdrawal, so that when members are within one year of their SRA, the majority of assets are held in lower risk funds.

Overview

The Lifestyle Profile invests 100% in equities up to 40 years from retirement followed by a gradual switch into the PSPS Diversified Growth — active fund. From 10 years to retirement, there is a gradual switch to a proportion of the strategy into PSPS Total Return Bond — active, and then the PSPS Cash — active fund.

Suitable for:

  • Members who are further away from retirement seeking exposure to higher returning investments initially and less investment risk as their term to retirement reduces; or
  • Members closer to retirement who expect to use their Personal Account to fund one or more cash sums at retirement.

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