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Our Future Focus range for new schemes

Our Future Focus range for new UK pension schemes provides members with greater choice to cater for the full range of post pension freedom options.

Click on the tabs below for more details.

New investment approaches for pension scheme members

Since the introduction of pension freedoms, savers have had much greater choice over how to take their retirement benefits than ever before. Our Future Focus range of lifestage investment approaches for new UK pension schemes has strategies suitable for those members who choose to make use of these 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 as a single lump sum

*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 these approaches?

You can use any of these 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:

Where can I see how the approaches work?

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

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 but there is a greater risk that the policyholder's pension could fall in value. 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 savings are gradually moved into a lower risk fund, namely the Aviva Deposit Fund. As the chart shows, three years from retirement we start moving savings into the Aviva Deposit fund.  After 3 years there will be 25% in the Aviva Deposit fund. The reason for this is to prepare you for taking 25% of your savings as a tax-free cash lump sum.

 

How the approach works:


Related documents:

Future Focus 3 Drawdown Lifestage Approach

Objective: Over the long term this approach offers the potential for reasonable 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 there is a greater risk that the value of the policyholder’s pension pot could fall.  The policyholder’s investment is moved into alternative funds to help prepare for buying an annuity 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 used in Future 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 prepare for taking part of the fund as a tax-free lump sum.

Want to know more?

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

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WA04186 07/2018