Risk & Reward
Whether you’ve been automatically enrolled into the Scheme, or you joined by choice, it’s important to review your investment options regularly.
Our members join us at all stages of life. You might have recently started working, or you might be starting to make detailed plans for your retirement.
It’s possible that you’ll want slightly different things from your pension at each stage, and that your approach to risk, return and the way you’d like your money to be invested may change.
Every member’s savings are initially invested in one of our target date funds (TDF), which invest your money differently as you get older. This way, your money is more likely to grow in the early years – when you have time for it to go up and down in value - and hold its value as you get closer to taking your pension. This simple, flexible approach makes TDFs a suitable option for many members, but we have a range of alternative investment options that you might want to consider if your approach to risk and return changes at any point.
If you decide that you’d like your savings to grow faster, for example, we have funds that expose your money to slightly higher levels of risk for a potentially higher return. Or, there are ways to invest your pension savings in only ethical funds. You can review your options and tell us if you’d like us to make a change within your Retirement Savings Account.
One of the most important factors when deciding what might be right for you is the level of risk linked with different investment funds.
Investments are all about trying to make the most of your savings and balancing the risk of investments going down with the potential reward of the investments doing well.
Different investment types have different levels of potential risk and reward. Usually, funds with more potential for growth carry more risk.
Your TPT savings are invested in funds and they all carry a risk. There are different risks and they’re broken down by different categories. The fund factsheets have been created to help you understand a bit more about the different options. Each one will highlight a number of different risks linked to the fund.
Some of the common ones you’ll find in our fund factsheets are:
Fund factsheets are detailed documents that provide technical information about the investment funds. Some people find them quite complicated and to help we have provided a summary of what it normally includes:
To help you understand the different investment options available to you, we have created a cover sheet for each fund factsheet which will provide you with an simple overview of the detail provided as part of each fund factsheet.
Charges are automatically included when we calculate how much your savings are worth. So, you won’t see them as a separate cost when you look at the current value of your retirement savings. There are different types of charges, which are included in the value of your retirement savings. Some of the charges are:
For more information and details of the charges, read the guide to fund factsheets that can be downloaded from here.
For personal requests relating to charges deducted from your savings please contact us.
To help you consider your options you could ask yourself the following questions:
Your answers to these questions will guide you as to whether the Target Date Fund or choosing your own investments will suit you most. If your answers are mainly ‘Yes’ then you are likely to feel happier with the Target Date Fund.
Successful investment requires a careful balance of risk and return. We want to make your membership worthwhile and keep your money working hard for you. To do this, we offer every member a number of investment options and have clear beliefs on how we manage risk, provide good value and, secure positive long-term outcomes.
Find out more here.
The fund factsheets should be used for information only. If you require advice about your personal situation and where you should invest your TPT savings, please seek financial advice.
You can log in at any time to review and make changes to your investment options.
If you haven't registered for your Retirement Savings Account yet, click here to find out how you can do it