Allen & Overy Pension Scheme
Understanding the Lifecycle Options

The underlying asset allocation for each of the Lifecycle strategies is the same up until 5 years before your Planned Retirement Age.

Accumulation Phase

The Accumulation Phase is the period leading up to 15 years before your Planned Retirement Age.

In this phase, your pension savings are invested exclusively in equity funds, namely: 95% in the SL Overseas Tracker Pension Fund and 5% in the SL Vanguard FTSE UK All Share Index Pension Fund, with the aim of long-term capital growth.

Transition Phase

In this phase, the aim is to reduce investment risk in the lead-up to your retirement.

Between 15 and 10 years to your Planned Retirement Age, allocations to the SL Schroder Intermediated Diversified Growth Pension Fund and the SL Ninety-One Global Multi-Asset Sustainable Growth Pension Fund are gradually introduced into each Lifecycle Strategy. This is achieved by reducing the allocations to the equity funds mentioned above.

Between 10 and 5 years to your Planned Retirement Age, allocations to the SL Index Linked Bond Pension Fund and the SL Corporate Bond Pension Fund are introduced into each Lifecycle Strategy. This is achieved by reducing allocations to the equity funds and multi-asset funds mentioned above.

Each Lifecycle will invest your fund differently once you are within 5 years of your Planned Retirement Age (the pre-retirement phase) as shown below.

Pre-retirement Phase

Multi-Asset Lifecycle Strategy (the default Lifecycle option for new joiners)

The Multi-Asset Lifecycle Strategy is designed primarily for members who wish to take flexible income "drawdown" at retirement (note that this would involve transferring your funds to an external arrangement at retirement).

The pre-retirement phase gradually changes your mix of investments so that by the time you reach your Planned Retirement Age (PRA):

  • 26.1% is invested in the SL Overseas Tracker Pension Fund (Overseas Equities)
  • 1.4 % in the SL Vanguard FTSE UK All Share Index Pension Fund (UK Equities)
  • 8.8 % is in the SL Schroder Diversified Growth Pension Fund (Multi-Asset Funds)
  • 8.8 % is in the SL Ninety-One Global Multi-Asset Sustainable Growth Pension Fund (Multi-Asset Funds);
  • 20% is in the SL Index Linked Bond Pension Fund (Index Linked Bonds); and
  • 35% is in the Corporate Bond Pension Fund (Corporate Bonds)

The graph below shows how the Multi-Asset Lifecycle Strategy is invested in the 20 years before your Planned Retirement Age. Please note that changes to the underlying asset allocation, in line with the graph below, are carried out on a monthly basis rather than annually. Changes take place at the beginning of the month and are based on the number of months to your Planned Retirement Age.

Multi-Asset Lifecycle Switching Period Graph

Cash Lifecycle Strategy

The Cash Lifecycle is for members who plan to take a one-off cash lump sum at retirement.

The pre-retirement phase gradually changes your mix of investments so that by the time you reach your PRA, 100% is invested in the SL Deposit and Treasury Pension Fund (Cash).

The graph below shows how the Cash Lifecycle Strategy is invested in the 20 years before your Planned Retirement Age. Please note that changes to the underlying asset allocation, in line with the graph below, are carried out on a monthly basis rather than annually. Changes take place at the beginning of the month and are based on the number of months to your Planned Retirement Age.

Cash Lifecycle Switching Period Graph

Annuity Lifecycle Strategy

The Annuity Lifecycle is for members targeting annuity purchase (and taking 25% tax free cash) at retirement.

The pre-retirement phase gradually changes your mix of investments so that by the time you reach your PRA:

  • 75% is invested in the SL Index Linked Bond Pension Fund (Index Linked Bonds); and
  • 25% is in the SL Deposit and Treasury Pension Fund (Cash)

The graph below shows how the Annuity Lifecycle Strategy is invested in the 20 years before your Planned Retirement Age. Please note that changes to the underlying asset allocation, in line with the graph below, are carried out on a monthly basis rather than annually. Changes take place at the beginning of the month and are based on the number of months to your Planned Retirement Age.

Annuity Lifecycle Switching Period Graph
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