From 1 November 2018, Phoenix will no longer automatically start lifestyle switching on all pension plans with this option, except for stakeholder pensions.
This means your pension savings will not be moved gradually into lower risk funds but will remain in the fund(s) that you currently invest in.
If you want to keep automatic lifestyle switching please contact us.
Why are Phoenix doing this?
Traditionally, lifestyle switching was designed to target a chosen pension date (typically age 60 or 65) when most people would use their pension savings to buy a guaranteed income for life (an annuity).
Many Phoenix customers are now accessing their pension savings earlier or later than their chosen pension date. The number of customers buying a guaranteed income for life (annuity) has fallen over the last few years, as people opt to transfer to another provider to access flexible retirement income or take their pension savings in one go or as a number of lump sums.
As a result, we identified that some pension savings are no longer being switched at the right time and may be invested in lower risk funds too early or higher risk funds for too long.
Could lifestyle switching still be right for me?
As the time to access your pension savings approaches you should review your investment choices.
Lifestyle switching could still be right if you are planning to:
- take all your pension savings on your chosen pension date.
Lifestyle switching might not be right for you if you are planning to:
- take benefits earlier or later than your chosen pension date;
- take a flexible retirement income;
- transfer to another provider; or
- take your pension savings as a number of lump sums.
What if my pension savings are already being automatically moved into lower risk funds?
Lifestyle switching will continue where we have already started moving your pension savings into lower risk funds.
You can opt out of lifestyle switching at any time and also change your investment choices at any time and we recommend you consider if continuing with lifestyle switching is still right for you.
Financial advice
If you have a financial adviser, we recommend you speak to them before making a decision.
If you are a UK resident and do not already have a financial adviser, you can find details of the advisers in your area from Unbiased. Financial advisers may charge for providing financial advice.