What is GlidePath?
GlidePath is a service that automatically allocates and adjusts your savings to a Fund or mix of Funds based on your age over time.
What is the key benefit of GlidePath?
A young person typically has different investment needs to someone approaching retirement and the mix of growth and income assets should change over your lifetime. While we should all review our investment mix regularly to determine whether it suits our current needs, many of us simply don’t have the time or perhaps the inclination to do so.
GlidePath takes away that hassle by automatically adjusting your investment mix to a strategy that we believe is appropriate for a typical person of your age.
Why is this important?
When you are younger you are in a position to accept more investment risk in exchange for potentially greater returns because you have time on your side to make up for any short term investment losses that you experience. As you get closer to retirement age though, it is sensible for most people to increase the level of income assets in their investments, as they typically produce more stable returns in the short term.
By automatically adjusting your savings at regular intervals GlidePath seeks to deliver a smoother investing journey over the long term.
Is GlidePath right for me?
GlidePath does not take into account your personal circumstances and may not be suitable for all members. For example, it may not be suitable for someone saving for their first home as it assumes you are investing for your retirement. Also GlidePath does not take into account your personal risk tolerance, and therefore may not be suitable for people who are particularly cautious when it comes to investing.
We will contact you each year when we amend your investment strategy. The times at which we make the switch to achieve your new asset allocation are pre-set and do not take into account market conditions at the time.
How does GlidePath work?
Every year from age 28 we will adjust your balance and future contributions to an investment strategy that invests in a lower proportion of growth assets.
The table below outlines how GlidePath adjusts your mix of growth and income assets as you age.
|Age||Target allocation to growth assets||Target allocation to income assets||Increase in income assets per year||Fund or combination of Funds invested in to achieve asset mix|
|28-48||100% decreasing to 77%||0% increasing to 23%||1%||Equity Fund/
|49-66||77% decreasing to 32%||23% increasing to 68%||2.5%||Growth Fund/
|67+||32% decreasing to 15%||68% increasing to 85%||0.5%||Balanced Fund/
We have based the income/growth weightings on current assumptions regarding retirement age, life expectancy and expected returns for the different asset classes. If any of these factors changes significantly we will amend our model. This could result in a one off change to your asset allocation to bring you into line with our new model, and could mean that the details in the table above will change.
The switch to your new investment strategy will take place automatically once every year.
|If your birthday
|Your investment strategy
will be switched on or about:
|1 December and 28 February||15 March|
|1 March and 31 May||15 June|
|1 June and 31 August||15 September|
|1 September and 30 November||15 December|
The times at which we buy and sell units in the Funds to achieve your new asset allocation are pre-set and do not take into account market conditions at the time. We will contact you each year when we amend your investment strategy.
Is there any additional fee to take part in GlidePath?
There is no extra charge for using the GlidePath service. However, you will pay the fees and expenses of the Fund(s) you are invested in.
Can I opt into or out of GlidePath?
Yes - you can opt into GlidePath at any time from when you join the Scheme. Likewise, you can opt out at any time by completing a switch form and choosing an investment strategy of your choice, otherwise you will remain in GlidePath indefinitely.
To opt in or out of GlidePath please complete a switch form.