We use cookies to give you the best possible online experience. By clicking Close you indicate that you are happy for your web browser to receive all cookies from our website including cookies that are linked to your personally identifiable information. See our cookie policy for more information on cookies and how to manage them.

Introducing our Future Focus range for new schemes

The new pension rules of April 2015 have changed the ways people can access their pension benefits. With more options available, we’ve updated our Future Focus range for new UK pension schemes to make them more suitable for the new world. 

Click on the tabs below for more details.

New investment approaches for a new world

Pension freedom has given savers much greater choice over how to take their retirement benefits. So we’ve refreshed our Future Focus range of lifestage investment approaches for new UK pension schemes – adding some great new strategies suitable for those exercising their new options.

Here’s the new range of five approaches at-a-glance:

Lifestyle approach name

Suitable for people likely to:

Aviva Future Focus 1 Drawdown

 take a flexible income using drawdown

 

Aviva Future Focus 2 Drawdown*

Aviva Future Focus 3 Drawdown 

Aviva Future Focus 2 Annuity

 swap their pension pot for an annuity income

Aviva Future Focus 2 Lump Sum

 take all their pension pot for an annuity

*This is Aviva’s standard default option. If your client doesn’t choose a preferred default strategy, Future Focus 2 Drawdown Lifestage Approach will be used.

How and when can I use the new approaches?

You can use any of the new approaches as the default strategy for new schemes, and for existing schemes staging from 1 June 2015 onwards. If your client doesn’t choose an approach, their default will automatically be Aviva Future Focus 2 Drawdown.

Scheme members who don’t want to invest in the default strategy will be able to pick from:

Why have you made these changes?

Our original range of three Future Focus lifestage approaches was designed for people buying an annuity at retirement. This made sense when we first developed the approaches, as that was what most people did when they retired.

Under the new pension rules, however, we expect fewer people will want an annuity. So we’ve created these new approaches so there are options for people who will want to use drawdown or take their whole pension pot as cash, along with those who’ll still want to purchase an annuity.

Where can I see how the approaches work?

Just click on the “How the approaches work” tab at the top of the page.

What about clients using the original Future Focus range?

Clients using Future Focus 1, 2 or 3 (our original range of Future Focus approaches) will see their approach changed to one of our new Future Focus Drawdown approaches. You can find out more here

Here’s an overview of how each approach works, which funds it uses and what it’s designed to achieve. If you’d like more detailed information, please download your guide to the new Future Focus range

 

Aviva Future Focus 2 Drawdown Lifestage Approach (our standard default option)

Objective: Over the long term this approach is expected to provide better returns than lower risk investments, but with a greater risk that the value of the policyholder’s pension pot could fall.  The policyholder’s investment is moved into lower risk funds as they approach their chosen retirement date.

How the approach works:


Related documents:

Future Focus 1 Drawdown Lifestage Approach

Objective: Over the long term this approach is expected to provide better returns than a typical savings account - but with the chance the value of the policyholder’s pension pot could fall.  The policyholder’s investment is moved into lower risk funds as they approach their chosen retirement date.

How the approach works:


Related documents:

Future Focus 3 Drawdown Lifestage Approach

Objective: Over the long term this approach offers the potential for good returns, although the value of the policyholder’s pension pot could fluctuate significantly. The policyholder’s investment is moved into lower risk funds as they approach their chosen retirement date.

How the approach works:


Related documents:

Aviva Future Focus 2 Annuity Lifestage Approach

Objective: Over the long term this approach is expected to provide better returns than lower risk investments, but with a greater risk that the value of the policyholder’s pension pot could fall.  The policyholder’s investment is moved into different types of fund to help protect the level of income they could get at their chosen retirement date.

How the approach works:

Related documents:

Future Focus 2 Lump Sum Lifestage Approach

Objective: Over the long term this approach is expected to provide better returns than lower risk investments, but with a greater risk that the value of the policyholder’s pension pot could fall.  The policyholder’s investment is moved into lower risk funds as they approach their chosen retirement date.

How the approach works:

Related documents:

Overview of the funds used

Fund name

Risk/return rating 

FF1 Drawdown 

FF2 Drawdown

FF3 Drawdown

FF2 Annuity

FF2 Lump sum

Aviva Diversified Assets Fund I

2


Aviva Diversified Assets Fund II

 3

 

Aviva Diversified Assets Fund III

 3

 

 


 

 

Aviva Blackrock Aquila Over 15 Years Corporate Bond Index Tracker

 3

 




Aviva Deposit Fund

 1

 ✔




FF =Future Focus

The funds in focus

Diversified Assets Funds

Our Diversified Assets Funds are specifically designed for our range of auto-enrolment default investment options. Their objective is to manage volatility while providing long-term growth through exposure to a range of asset classes.

The funds offer three different risk/return levels:

  • Diversified Assets Fund I being the lowest
  • Diversified Assets Fund II in the middle
  • Diversified Assets Fund III being the highest

You can find out more in our Aviva Diversified Assets Funds brochure

Aviva Blackrock Aquila Over 15 Years Corporate Bond Index Tracker

The Future Focus 2 Annuity approach uses the Aviva BlackRock Aquila Over 15 Years Corporate Bond Index Tracker Fund in its second stage. The purpose of using this fund is to help protect the level of income the employee’s pension pot could buy on their chosen retirement date.

Aviva Deposit Fund

The final phase of all our Future Focus approaches uses the Aviva Deposit Fund. Moving money into this fund is a move designed to help protect the value of the cash lump sum the employee can get when they take their benefits. 

Want to know more?

For more information about our refreshed Future Focus range please contact your usual Aviva consultant.


Changes to existing investment strategies

Along with our new Future Focus range, we’re also changing the funds used in the de-risking phases of all our existing lifestage, lifestyle and phased switching investment strategies.

Learn more about these changes

Back to top

WA04186