Introducing our new 'Target Lifestyle Strategies'

10 March 2015
A new set of lifestyle strategies that target drawdown as well as rebadged existing strategies.
What's changing in April
  • New lifestyle strategies for customers who want to go into drawdown
  • Available within the charge cap and can be used for scheme defaults
  • Existing lifestyle strategies rebadged

We’ve got a long and proud history when it comes to product innovation. The introduction of ‘Freedom and Choice’ in April 2015 makes the pensions landscape a lot more flexible and we’re ramping up the choice and innovation behind our suite of fixed lifestyle strategies.

We’re unleashing a new collection of lifestyle strategies that target drawdown as well as rebadging our existing strategies. But that’s not all, these new strategies will fit within the charge cap and be available to use as a default whilst expanding the range of options should members wish to engage. 

Here’s a summary of the key points:

From April, we are launching a new set of lifestyle strategies to sit alongside our current strategies in the stable. The new strategies will be suitable for drawdown as they’ll take investors on a journey through our Governed Portfolios, which have a six year track record in delivering appropriate risk and return, and during the last five years will move investors into an appropriate Governed Retirement Income Portfolio, our risk-targeted centralised investment proposition built exclusively for drawdown.

We’ll have five risk-graded versions of the new strategies with both passive and active equity management styles to choose from. You can even use the strategies as a suitable default because our low cost active and passive options will fit within the charge cap. This means that the member is lined up to be in the right mix of assets to start taking income from their fund.

We’ll have three different end points for our lifestyle strategies with options targeting cash, annuity and now drawdown. We’ll be rebadging our range of fixed lifestyle strategies to Target Lifestyle Strategies with the three sets labelled as:

  • Target Cash
  • Target Annuity
  • Target Drawdown

Diagram showing glidepaths for annuity, cash and drawdown

View a larger version of this image.

The Target Annuity, Target Drawdown and Target Cash strategies share a similar asset allocation journey until five years before the retirement date. At that point, each strategy takes off on their own unique glidepath with the aim of delivering a fluid and gradual descent to their desired outcome.

These strategies not only demonstrate unbelievable flexibility but also deliver dynamic asset allocation through monthly switching and a tactical overlay and what’s more, they’re available at no extra cost so can be used as an investment default if chosen by the adviser or the employer.

About the author

Ryan Medlock

Investment Proposition Manager

Ryan’s remit includes speaking investment matters at adviser events, regularly contributing to Royal London websites and trying to beat his colleagues in the fantasy fund manager competition.

Last updated: 25 Mar 2016

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