Investments within your DemoProd pension

When you have considered what level of contributions you can make to your pension it is also important to think about how these are invested.
Where you invest is dependent on factors such; as your age, your approach to risk, your financial situation and how much time you have to spend on your investment decisions. The value of your pension will go up or down depending on the investment returns and charges on the fund(s).

If you don’t make your own choice your money will be invested in the default fund. This section will provide more information on what the default fund for Demo Ltd Group Personal Pension Plan is and what you should consider if you want to choose other investment funds.

 

Where you invest should depend on:

 

• Your age
  
  
• Your approach to risk
  
  
• Your financial situation
  
  
• How much time you have to spend on your investment decisions

The default fund for the Demo Ltd Group Personal Pension Plan is the Fund Description Testing. On joining, your pension contributions will be automatically invested in the default fund.

Just because it’s the default fund, this does not mean it is the safest option or that it’s the right choice for you – you should consider if the default fund is the best way for you to invest your pension. It is designed to fulfil the broad needs of a wide range of investors not the exact needs of you as an individual.

 

VIEW THE DEFAULT FUND

There is a lifestyle profiling approach that is applied to the default fund. This means that funds are invested in riskier funds, with the aim of gaining a higher return, when you are a long time from retirement and then in the years as you approach retirement the funds are invested in less risky funds that are likely to offer a lower return but are likely to be less affected by investment market falls.

If you wish to move out of the default fund you can switch your investment choice at any time, with no cost or penalty. You will need to contact Scottish Widows directly to switch your investments. If you have registered for online servicing with Scottish Widows you can also use this to review your pension plan and switch funds.

When choosing your own funds It is important that you have the time to review them on a regular basis and are able to change them regularly. Reviewing is as important a part of managing your investments as making a choice initially. Markets, funds and your goals will change over time and it is important you review regularly to keep your choices appropriate.

If you have registered for online servicing with Scottish Widows you can also use this to review your pension plan and switch funds.

When choosing your own funds it's important that you have the time to review them on a regular basis and are able to change them regularly. Reviewing is as important a part of managing your investments as making a choice initially.

Markets, funds and your goals will change over time and it is important you review regularly to keep your choices appropriate.

 

VIEW THE FUND RANGE

My investment choices

When you are investing in a pension, you will need to consider your attitude to risk and the potential return or loss over the period in which you are investing. Most pension funds will have a risk that their value may be lower than the original invested value as investment can go up and down in value.

This is a decision you make based on your own personal circumstances.

There are a large number of funds to choose from, however there may also be a limit to how many funds you can choose to invest in at one time. Your provider will give each fund a risk rating and they may also review them from time to time and the risk rating may change. You will find performance details that are maintained on a regular basis on Scottish Widows website.

Things to consider:

• There will be a maximum number of funds you can invest in at any one time
• You will be able to redirect contributions and/or switch your investment fund to an alternative any time (subject to any restrictions Scottish Widows may impose)
• You will need to notify Scottish Widows of all fund switches. NFP take no responsibility for investment losses where switching is notified to us, as we are unable to process this request on your behalf
• The fund range available is constantly changing
• There are no guarantees that your pension plan will be sufficient to meet your retirement needs. You should regularly review your investment selection and potential benefits regularly to ensure it continues to meet your investment and retirement needs
• Some funds carry an additional Annual Management Charge (AMC)
• If you wish to seek professional help or guidance, you may want to see an independent financial adviser or contact NFP.