Auto enrolment - where will my money be invested?

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It depends. Workplace schemes vary but your employer will provide you with information on where your money is being invested.

Your employer will choose a fund for your contributions to automatically be invested in which is usually low to medium risk, and which will place and change your investments according to your age – this two-stage process is known as 'lifestyling'.

It aims to grow your investment while keeping risk at a level you’re comfortable with in the early years (the growth stage). Then, as you approach retirement, it aims to give you more certainty about the amount of pension you can buy via an annuity when you retire (the lifestyle stage).

The value of an investment can fall as well as rise and is not guaranteed for a number of reasons, for example market and currency movements. You may get back less than the amount originally invested.

There’s lots more information on pensions and auto-enrolment available online. Here are some links that you may find useful: new window) new window)

You can always speak to your employer if you have any questions or concerns about auto-enrolment.

There’s no guarantee that the fund objectives will be met.