Our default investment

The Royal London default investment is the Balanced Lifestyle Strategy (Drawdown)
Our default investment options offer your clients:
  • Solutions designed by our investment experts
  • A selection of lifestyle options
  • Flexibility over default choice
  • Governance you can count on
  • Communications to your employees
  • Affordable solutions

We’ve designed our default investment based on the Department for Work and Pensions (DWP) guidelines*, so your clients can feel confident they’re offering members an investment solution that’s in line with the regulator’s recommendations

The Royal London default investment is the Balanced Lifestyle Strategy (Drawdown) and this strategy is reviewed on a regular basis to ensure it remains a suitable default for members invested in it.

This is the default investment that will apply for new schemes with Royal London from February 2018. If there are new members joining existing schemes then the Royal London Balanced Lifestyle Strategy (Annuity) will continue to apply until November 2018.

*Guidance for offering a default option for defined contribution automatic enrolment pension schemes, DWP, May 2011.

What does the default invest in?

The Royal London Balanced Lifestyle Strategy (Drawdown) invests in three of our risk-targeted Governed Portfolios that are built for saving for retirement.

On retirement, members will move into a Governed Retirement Income Portfolio that is designed for taking a regular income in retirement.

The lifestyle journey

The Royal London Balanced Lifestyle Strategy (Drawdown) automatically reduces the investment risk as members move closer to retirement. It gradually switches from higher to lower risk Governed Portfolios, ending in our Governed Retirement Income Portfolio 3 from which members can take a regular income.

  The lifestyle journey
Risk category At 15 yrs + At 10 yrs At 5 yrs Retirement
Balanced Governed Portfolio 4 Governed Portfolio 5 Governed Portfolio 6 GRIP 3

The diagram below shows the asset allocations in the 15 years before retirement.

Other default investment options

If your client wants to keep responsibility for the suitability of the default or the design of the default, then we can help them meet many of the government guidelines and deliver a good outcome for members.

Our range of default options

Our range of default options are shown below and have been categorised depending on who is taking responsibility for suitability and design.

RangeResponsibility for default suitabilityResponsibility for default designDefault options
Royal London Default Royal London     Royal London Balanced Lifestyle Strategy (Drawdown)
Royal London Selected Royal London Royal London Balanced Tracker Lifestyle Strategy (Drawdown)
Royal London Designed Employer/Adviser Royal London All of our Lifestyle options which can include bespoke branding, bespoke lifestyle route and choice of at retirement targets1  
Royal London Supported Employer/Adviser Employer/Adviser All of the options available under Royal London Designed, plus build your own custom lifestyle including your asset allocation, fund selection and lifestyle switch points1

1 Default investment strategies may only use our internal funds and BlackRock passive funds to ensure that fund charges will not cause the scheme to breach the 0.75% pa charge cap.

Next steps

Last updated: 23 May 2018

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.