Our Governed Retirement Income Portfolios

Our Governed Retirement Income Portfolios

Pensions | Investing for your retirement

Building up your retirement savings may have taken you many years. So when you're getting ready to retire, it's important you take time to think about what you want to do with your savings.

We have lots of ways for you to invest your retirement savings. They're all about balancing the return you want to get with the risk you're prepared to take. If you decide you'd like flexible access to your savings and a regular income, then we have an investment option that could suit you ? Governed Retirement Income Portfolios (or GRIPs for short).

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What's inside

04 Introducing GRIPs 05 A closer look at GRIPs 06 Asset classes explained 09 Gripping reasons to invest

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Introducing GRIPs

When you're saving for retirement you can usually afford to ride out the ups and downs of the stockmarket. But when the time comes to start taking income the impact of investment returns can have a much greater effect on your savings.

If you suffer losses in the early years it can be hard to recover, and could result in you having to take a reduced income in order to avoid running out of money. This means it can be difficult to know how much income your retirement savings can sustain over a period of time. A financial adviser can help you to discuss your own individual investment needs.

GRIPs are designed for people who want to take a sustainable income from their pension. They aim to deliver growth above inflation to support regular income withdrawals, whilst taking a level of risk consistent with your attitude to risk.

The timing of when you start taking income can have a big impact on your retirement savings. GRIPs take advantage of opportunities to help your money grow and aim to reduce the impact of sudden market shocks.

GRIPs form part of our Governed Range, so they come with active management, impartial governance and responsible investment at no extra cost.

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A closer look at GRIPs

There are five portfolios to choose from and each one is made up of a diversified mix of asset classes.

Asset class

GRIP1

GRIP2

GRIP3

GRIP4

GRIP5

Equity

12.50% 22.50% 30.00% 40.00% 50.00%

Property

5.00%

7.50%

7.50%

10.00%

10.00%

GInCocvooemmremnePododrRitteifeotsilrioem1ent

Governed Retirement Income Portfolio 2

GInocvoe5mr.e0neP0do%rRtefotilrioem35e.n0t0%GInocvoemreneP5do.0rRt0ef%otilrioem4ent5.GI0n0ocvo%emrenePdorRt5efot.0ilrio0em%5ent

Global High Yield Bonds

5.00%

5.00%

5.00%

6.25%

6.25%

UK High Yield Bonds

5.00%

5.00%

5.00%

6.25%

6.25%

UK Corporate Bonds

14.00%

13.00%

10.00%

7.25%

4.00%

Global Corporate Bonds

4.00%

3.50%

3.25%

2.00%

2.00%

S12h.o5r%t EDquuritay tion UK Corp2o2r.5a%teEBquoitnyds

U5.K0%InPdreoxpeLritny ked

7.5% Property

S5.h0o%rCt Domumroadtiitoyn UK Index5.L0i%nkCeodmmodity

S6.h3o%rGt DlobuarlaHtiigohnYGielldobal In6d.3e%x LGilnobkaeldHigh Yield

6.3% UK High Yield

6.3% UK High Yield

U16K.7G%oCvoerrpnomraetenBtoBndosnds 12.5% Corporate Bonds

G16lo.7b%alGGiltosvernment Bon1d2s.5% Gilts

S16h.o7r%t IDnduerxaLtiniokendUGKiltsGove1r2n.5m%eInntdeBxoLnindkesd Gilts A1S5tbr.sa0toe%lguAietbses(oiRnlcueltectauRsrehtn)urSntrateg1Si5ter.as0te%(ignAiecbsls(uoindlcuiltnecagRsehCt)uarnsh)

304.0.%5E0q%uity 7.55%.0Pr0o%perty

4.50% 40.0% E3q.u0it0y % 5.00% 10.0% P5r.o0p0er%ty

2.0500%.0% Equit1y .50% 3.7510%.0% Prope2r.t5y 0%

5.01%.5C0om%modity 0.75% 5.0% Co0m.7m5od%ity

0.005.%0% Commo0d.i0ty0%

6.33%.5G0lo%bal High Yie1ld.75% 7.5% Glo1b.7al5H%igh Yield 0.008.%8% Global0H.ig0h0Y%ield

6.3% UK High Yield

7.5% UK High Yield

8.8% UK High Yield

101.00%.0C0or%porate B1o0nd.0s 0%5.0% Co9r.p7o5ra%te Bonds 5.002.%5% Corpor4a.t0e B0o%nds

10.40.%0G0i%lts

3.75% 5.0% Gi2lts.50%

2.520.%5% Gilts 1.00%

101.01%.0In0d%ex Linked G2i.l7ts5% 5.0% Ind1e.x5L0in%ked Gilts 0.002.%5% Index L0in.k0ed0G%ilts 1S5tr1.a00te%.g0Aie0bss%(oinlcultecaRseht)u1r0n .00%1S5tr.a0te%g1Aie0bss(.oi0nlcu0ltec%aRseht)urn 10.01S00tr%.a0te%gAiebss(oinlcu7lt.ec5aRs0eht)%urn

Lower

RISK

Higher

We want to try and get the best returns we can for you, in line with how you feel about risk. Doing that means investing in a range of different things called `asset classes'. How much you invest in each asset class depends on how much (or how little) risk you're comfortable with.

The diagram above shows that as you move from GRIP 1 to GRIP 5 the mix of assets changes from lower risk to higher risk.

You can find an explanation of each asset class and the risks associated with them on pages 6 and 7.

The higher risk you're willing to take with your investments, the higher your potential return, but the greater your chance of loss.

Lower risk investments on the other hand offer greater security but lower potential returns.

It's important to remember that the value of investments can fall as well as rise and you could get back less than you pay in.

Your financial adviser can help you decide which GRIP would suit you best.

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