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Useful information
How your Plan’s default investment can work for you
Your Plan might have a default option. This is the fund or strategy that your savings are automatically invested in if you prefer not to choose your own investments.
Investing your savings
The trustees of your Plan invest your savings in managed funds, which hold money from investors like you. Through these funds, your savings are invested in assets such as company shares, government bonds and cash deposits.
There are two ways of deciding which funds your savings are invested in:
- If you do not choose funds yourself, we will invest your contributions in the default option for your Plan. This may be a single fund or a number of funds combined as a strategy. You can find out what the default option for your Plan is when you login to PlanViewer.
- If the rules of your Plan allow, you may be able to choose the funds yourself from the range available through your Plan. This is often called ‘self-select’ and it allows you to tailor an investment strategy to your individual goals. You can see which funds are available through your Plan when you login to PlanViewer. Each fund has its own fact sheet, and you have the option of asking an authorised financial adviser to help you choose.
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Default fund strategies are intended to meet the needs of a wide range of people. There is no guarantee that they will be suitable for your individual goals.
A default investment gives you the reassurance of knowing that it has been selected by investment experts. In addition, it will be carefully monitored and may be updated if the Trustees decide that a different option may be more suitable for your plan.
Many plans today choose what is known as a ‘lifestyle strategy’ or ‘working life strategy’ as their default. This means that during the early years of your working life, the Trustees of your Plan invest your money in higher risk funds that have the potential for long-term growth. Please remember that as with any investing, the growth is not guaranteed.
As you get closer to retirement and accessing your savings, the aim is to protect their value by gradually moving your investments into more cautious funds. With this type of strategy, all the changes to your investments happen automatically – you don’t need to do anything.
Whichever investment strategy you choose, it’s a good idea to check your savings regularly to ensure you are on track to meet your individual goals.
What you could do next
Want to find out more about investing?
Learn more about asset classes, risk and diversification.