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

Since the introduction of auto enrolment, the Department for Work pensions (DWP) stated that all employers should offer their employees schemes with a suitable default investment.

With this in mind we’ve designed our default investment based on the 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.

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



The Royal London default investment is the Balanced Lifestyle Strategy (Drawdown) which is part of our range of Target Lifestyle Strategies that are designed to reduce investment risk as retirement approaches.

Our default investment is invested in three of our risk-targeted Governed Portfolios, built for saving for retirement. Each portfolio within the strategies is invested in a mix of assets. They are all reviewed regularly by our Investment Advisory Committee to make sure they perform in line with their overall objectives, taking into account current market and economic conditions.

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

  Your lifestyle journey
The lifestyle journey
Risk 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. This shows how the investment risk is automatically reduced as members move closer to retirement gradually switching from higher to lower risk investments.

the asset allocations in the 15 years before retirement

 Benefits of the Target Lifestyle Strategies

  • Targeted outcomes
  • Dynamic asset allocations
  • Meets charge cap rules for scheme defaults
  • Governance at no extra cost
  • Automatic switching and updates

Find out more

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

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. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.