Aegon launches new fund for digital pension customers

The Retiready Stability fund, which slots into risk level 1, means pension investors now have a choice of five funds, one for every risk level. The fund is very low risk and designed for investors seeking to preserve their pension savings, typically before taking retirement income, and still receive bank deposit beating returns over the medium term.

New research from Aegon suggests that one in three (32%) people over 55 are now more risk averse as a result of the crash, and are approaching investment with this in mind. Despite record low interest rates, growth ambitions in this age group are also conservative. 40% are investing in products that simply keep pace with or slightly beat inflation.

Stability’s design means it’s unlikely to fall by more than 5% in the event of a sudden market fall. It mitigates risk through broad diversification across four absolute return funds, investing in a mix of UK and overseas equities, bonds, commodities and alternative investments.

The fund is equally invested across four carefully selected funds: Fulcrum Diversified Core Absolute Return; Jupiter Strategic Reserve; Kames UK Equity Absolute Return; and Newton Global Dynamic Bond. The fund TER is 0.87%.

Nick Dixon, Investment Director at Aegon said:

“Many pension savers approaching retirement do not want to lose money. Retiready’s Stability fund is designed to minimise market losses while retaining potential for growth above inflation.

“We also know that too much choice can be paralysing, which is why we’ve developed a straightforward risk assessment tool to help people understand how much risk they are willing to take and five easy options to choose from.”