Group pensions are typically occupational pension schemes containing 5 members or more. Some schemes will have several thousand members.
Group pensions will offer a limited number of fund choices with typically a default investment strategy or life-styling fund which will capture most members contributions. These life-styling funds are multi-asset funds with exposure to stocks and shares, government bonds, property and cash. As a member approaches retirement, typically from 10 to 15 years before the scheme’s designated retirement age, their individual fund will reduce its exposure to stocks and shares (growth assets) to more defensive assets such as bonds. This serves to reduce the danger of a sudden financial crisis having a detrimental effect on their retirement income.
MoneyCoach provides advisory services to many companies and their employees on their group pension schemes and benefits. We take a proactive approach to contacting members on a regular basis to offer our services.