What is a default fund?

A default fund is the fund that an employer or scheme trustee has chosen for scheme members who don't make an active fund choice. Any members who don't choose a fund will be automatically put into this fund. It's usually a lifestyle fund, which means it manages scheme members' investments right up to retirement by automatically switching from investments that aim to grow their pension savings to investments that aim to prepare them for a particular retirement outcome, for example drawing down income or buying an annuity.

For employers who prefer to let Aegon choose the default for them, we offer the Aegon Workplace Default fund (PDF - 181kb)(Opens new window)(Opens new window)(Opens new window)(Opens new window).

If you’re interested in our range of default fund options you can choose between the Aegon Workplace Target range or the TargetPlan range. Speak to your usual Aegon contact about your options.

The value of investments can go down as well as up. Investors may get back less than the amount invested.