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We’re making changes to our Prudential Dynamic Growth IV Lifestyle Options

From August, we’re adding the Prudential Dynamic Growth V (PDG V) Fund into the Prudential Dynamic Growth IV (PDG IV) Lifestyle Options.

  • Impacted members who are 15 years and more from retirement will either have all or a proportion of their investment switched out of the PDG IV Fund and into the PDG V Fund.
  • A member will only be invested in the PDG V Fund until they are 15 years from retirement, at which point, they will transition into PDG IV as part of the normal lifestyle journey.

Members who will be switched (either partially or fully) into the PDG V Fund are those

  • who are more than 15 years from retirement
  • who are invested in one of the PDG IV Lifestyle Options, and
  • whose pension plan is invested in the PDG IV Fund.

Members who are within 15 years of retirement won’t be impacted by the change. Their investment won’t be switched into the PDG V Fund.

  • Prudential Dynamic Growth IV Targeting Annuity
  • Prudential Dynamic Growth IV Targeting Cash
  • Prudential Dynamic Growth IV Targeting Drawdown
  • Prudential Dynamic Growth IV Targeting Retirement Options

We’re also changing the name of these Lifestyle Options. Not by much, the change is very subtle. But the above will become

  • Prudential Dynamic Growth Targeting Annuity
  • Prudential Dynamic Growth Targeting Cash
  • Prudential Dynamic Growth Targeting Drawdown
  • Prudential Dynamic Growth Targeting Retirement Options

Lifestyling is an investment strategy. It provides automatic switching of a member’s pension savings from higher-risk into lower-risk funds as they move closer to their planned retirement age.

To understand Lifestyling a bit more, picture it as a series of investment phases leading to a planned retirement age.

Phase 1 – the "Growth phase"

  • Occurs over the medium-to-long term, 15 years and more from retirement.
  • The aim at this time is to grow the value of a member’s pension savings.
  • Higher-risk funds offer greater potential for financial growth, so it’s at this time a member’s pension savings are invested into higher-risk funds.

Phase 2 – the "Defensive phase"

  • Kicks in 15 years to retirement.
  • It's when a member’s investment is automatically switched from higher-risk funds which are more susceptible to large drops in value, into lower-risk funds.
  • Is designed to help reduce the risks of short-term falls in the value of a member's pension savings as they approach their retirement age.

There's more on Lifestyling available in our Fund Guides and online.

We’re investing impacted members in the PDG V Fund during the ‘growth phase’ of their Lifestyle journey, because it’s a higher-risk fund. We believe the value of their investment could benefit from higher potential growth at the right time in the journey.

What a Lifestyle journey could look like after the change is made

The below graph shows the funds included in the PDG IV Targeting Annuity Lifestyle Option, and how the proportions invested change automatically and monthly each year to retirement.

The below graph reflects the same Lifestyle journey after we implement the change. You can see the ‘growth’ phase, where a member’s pension savings are invested in the PDG V Fund, before being gradually switched into lower-risk funds 15 years from retirement.

The below graph shows the funds included in the PDG IV Targeting Cash Lifestyle Option, and how the proportions invested change automatically and monthly each year to retirement.

The below graph reflects the same Lifestyle journey after we implement the change. You can see the ‘growth’ phase, where a member’s pension savings are invested in the PDG V Fund, before being gradually switched into lower-risk funds 15 years from retirement.

The below graph shows the funds included in the PDG IV Targeting Drawdown Lifestyle Option, and how the proportions invested change automatically and monthly each year to retirement.

The below graph reflects the same Lifestyle journey after we implement the change. You can see the ‘growth’ phase, where a member’s pension savings are invested in the PDG V Fund, before being gradually switched into lower-risk funds 15 years from retirement.

The below graph shows the funds included in the PDG IV Targeting Retirement Options Lifestyle Option, and how the proportions invested change automatically and monthly each year to retirement.

The below graph reflects the same Lifestyle journey after we implement the change. You can see the ‘growth’ phase, where a member’s pension savings are invested in the PDG V Fund, before being gradually switched into lower-risk funds 15 years from retirement.

 

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.