Target lifestyle strategies

A range of lifestyle strategies focused on three client retirement income choices

Our target lifestyle strategies offer a choice of three different retirement end points - cash, annuity and drawdown - and five risk levels. In addition, there are both passive and in-house active equity options.

So you can make investment decisions based on risk profile, asset allocation and desired client outcome. And as all the strategies are supported by our robust governance process, you can be confident that whichever strategies you choose for your clients will continue to meet their objectives.

Three customer retirement choices

Target Cash

Target Annuity

Target Drawdown

Investment glidepaths

All of the target lifestyle strategies have a similar asset allocation until five years before retirement. At that point, the glidepaths change in line with each strategy's target outcome.

Here are the glidepaths for our Balanced Lifestyle Strategy, showing the different target outcomes - cash, annuity and drawdown.

Target Cash glidepath
Target Annuity glidepath
Target Drawdown glidepath

All of the target lifestyle strategies benefit from monthly switching and a tactical asset allocation overlay - all at no extra cost.

Plus, they're suitable as workplace scheme defaults as they meet charge cap rules.

 

Benefits of the target lifestyle strategies

  • Targeted outcomes

  • Dynamic asset allocation

  • Meet charge cap rules for scheme defaults

  • Governance at no extra cost

  • Automatic switching and updates

Confidently recommend a target lifestyle strategy

If you're thinking of recommending one of our target lifestyle strategies to a client, here's some more information to help support your suitability and due diligence process.

How we apply responsible investment in our Governed Range

To help us make sure that your clients' money is being invested responsibly, we focus on four key areas:

  • Stewardship and voting - we ask our asset managers to vote on our behalf to reflect our voting principles
  • Advocacy and engagement - we use our position as a shareholder to help positively influence the behaviour of the companies we invest in
  • ESG integration - we integrate environmental, social and governance factors into our investment decision-making processes
  • Active management - we actively manage where your clients' money is invested. So, for example, we can adjust our exposure to companies with large carbon footprints or poor social practices.

Underpinning this, we have a robust responsible investment monitoring framework that includes regular communication with our asset managers to discuss responsible investment processes and activities.

Find out more about our responsible investment approach

 

Royal London Asset Management's approach to responsible investment

Over 95 per cent of our assets are managed by Royal London Asset Management. As such, Royal London Asset Management plays a key role in our commitment to being a responsible investor by helping us to fulfil our stewardship responsibilities.

Both Royal London Mutual Insurance Society and Royal London Asset Management are signatories of the UN Principles for Responsible Investment and the UK Stewardship Code.

 

Stewardship and responsible investment report

Royal London Asset Management actively engages with companies with the aim of influencing and creating change that will help deliver better long-term outcomes for both customers and wider society.

Read Royal London Asset Management's latest Stewardship and responsible investment report to find out more about their approach to stewardship and how they integrate ESG factors into their responsible investment decision-making process.