Investments
Paying more into your Lloyd's Register Superannuation Fund Association (LRSFA) DC Fund isn't the only way of helping it grow. How you invest your DC Fund is also important.
Your DC Fund is administered by Standard life. The contributions you and Lloyd's Register make into your DC Fund are invested with the aim of growth — if your investments perform well, your DC Fund will grow in value. The better they perform, the more retirement income you'll have.
However, your investments are subject to market risk which means the value can fluctuate e.g. go down as well as up and could be worth less than was paid in.
Every year, Standard Life will send you an annual benefit statement that shows how your savings have performed, how your DC Fund is currently invested, and what the value of your DC Fund might be at your Normal or Selected Retirement Age. When you receive your statement, it's a good idea to check that your investments are right for you and still reflect your retirement goals.
To change the funds you're invested in, go to the Standard Life member dashboard. If you’re a Lloyd’s Register employee, you can access the dashboard through Lifelens from Connect on your work computer. Neither Standard Life nor Group Pensions can give you financial advice about your investments. You can find a financial adviser on moneyhelper.org.uk.
Investments and risk
We can't talk about investments without mentioning risk as there's always an element of risk involved with them. So it's important to consider the level of risk you're comfortable with. It may change over time and with your circumstances — for example, you may be less happy with risk as you approach retirement.
Not sure what your attitude to risk is? Use Standard Life's Risk questionnaire to find out.
Your investment options
In September 2024, we made changes to the investment options available to you. Please refer to the communication you received in July 2024 for details of the changes that took place. The information on this page is correct as at September 2024.
Depending on your attitude to risk and your confidence in making investment decisions, you can either choose to invest in the DC Section's default investment strategy, an alternative lifestyle profile or from the self-select range.
The Sustainable Multi Asset Universal Strategic Lifestyle Profile (SLP)
You can invest your LRSFA DC Fund in the Sustainable Multi Asset Universal Strategic Lifestyle Profile (SLP) — this is the DC Section's default strategy and has been selected by the Trustee. The only decision you need to make is when you want to retire and the strategy invests your DC Fund in different investment funds depending on how far you are from your selected retirement date.
Generally, your DC Fund is invested in growth (or riskier) funds when you're further away from retirement — these funds aim to maximise the value of your DC Fund and have been selected by the Trustee following advice from their investment advisers. As you get closer to retirement, your investments are gradually moved into lower risk funds over a period of 15 years which offer you the flexibility to take your money the way you want when you retire. These funds provide diversification across a wide range of different investments, while still aiming to grow your DC Fund. This option is designed to meet the needs of an investor with a balanced view of risk and reward.
As this gradual switch automatically takes place, it is important to update Standard Life if you decide to change your selected retirement age. If you don't choose a retirement age, this will be set at age 65 (the normal retirement age in the DC Section).
Find out more about the Sustainable Multi Asset Universal Strategic Lifestyle Profile (SLP) in the Standard Life Investment Guide.
Alternative strategic lifestyles
There are a range of alternative strategic lifestyle profiles for you to choose from in recognition of the different ways you can take your money when you come to retire. The three lifestyles target annuity, cash and drawdown at retirement.
Find out more about the alternative strategic lifestyles in the Standard Life Investment Guide.
Self-Select Funds
You can choose from a range of self-select funds offered by Standard Life.
If you choose this option, you must review your choices regularly to make sure they're still suitable. You can review or switch your investments by logging in to your Standard Life account.
Find out more about the self-select funds in the Standard Life Investment Guide.
Charges
Remember that fund management charges (FMCs) — the fee charged by the investment manager for investing your DC Fund — depend on the type of investments you opt for. It is shown as a percentage of your DC Fund, building up daily over the course of the year, and is taken from your DC Fund every month by deducting units from each fund. FMCs are taken to pay for the cost of setting up the scheme, the advice provided, fund management and policy administration.
The Effective Total Annual Fund Charge (Effective TAFC) is the fund manager charge (FMC) plus any additional expenses, minus any scheme rebate that applies.
The charges and rebates are not guaranteed — they're regularly reviewed and are likely to change.
Remember that you — not the Trustee or Lloyd's Register — are responsible for the investment choices you make in the DC Section. If you're unsure, you can take independent financial or tax advice before making any decisions. You can find a financial adviser at moneyhelper.org.uk