Changes to Pace DC investments for new members

The Pace Trustees have reviewed the way the three Pace DC Target investment options work, including the default option.

We took advice from our investment adviser and considered how much investment risk members could take at different ages and how much they might save for their retirement. Following this review, we decided that members who are more than 15 years from their chosen retirement date should have more of their pension account invested in equities (company shares). Although equities are higher risk, they also offer a higher expected return – which may help to improve members’ outcomes at retirement.

We’ve now made this change to the three Target options for new joiners to the scheme. The change will take place for existing members of Pace DC early in 2021. The updated investment guide for new joiners explains the changes and if you’ve joined the scheme from the December 2020 payroll date this applies to you now. The investment guide for existing members will be updated in the new year. If you’re in one of the Target investment options but have less than 15 years to go until your chosen retirement date, the changes won’t affect you.

We’ve also added a new equity (shares) fund to the range of funds available to members: the Pace Growth (Shares) 2021 Fund. We believe this is more suitable than the current Pace Growth (Shares) Fund and the old fund is now closed to members wishing to start investing in shares after the December 2020 payroll date. Further information on the new fund is provided in the updated investment guide for new joiners.