What is a default investment?
All workplace schemes must have a default investment option where employees' pension savings are automatically invested if they don't choose their own investments.
And with most employees choosing not to make an active decision about their investments, it's vitally important that you choose a default option that's suitable for your employees now and in the future.
Your responsibilities
There's specific guidance from the Department for Work and Pensions (DWP) on what you need to consider when it comes to choosing a default investment option:
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Does the default meet the retirement goals and attitude to risk of most
of your employees? -
Does the default give your employees' money the chance to benefit from
good performance over the long term? -
Does the default manage risk to give your employees the confidence to
stay invested? -
Are there other choices for employees who don't want to stay in the
default? -
Do employees get regular communications about the default?
-
Is the default affordable?
Find out more about your default investment responsibilities in our Guide to default investment.
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The Royal London default investment
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Other default investment options
To see our full range of default investment options, download our Guide to default investment (PDF) (opens in new window).