Lifestyle Strategies from Aviva

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1 Lifestyle Strategies from Aviva Together with our full range of investment funds, we also offer a choice of Lifestyle strategies for our pension customers. Lifestyling is a very simple concept designed to give you the peace of mind in knowing that as you approach retirement, your pension fund is managed in a way that gradually reduces your exposure to riskier assets, such as equities toward lower risk assets such as bonds or cash. Lifestyling strategies use an automatic system that, over time, switches your pension fund from higher risk funds to lower risk funds as you approach retirement. This in effect means that the pension fund you have built up is gradually de-risked over a set period of time prior to your retirement age. We have two different lifestyle strategies - an Annuity strategy and an ARF strategy which are supported by three different fund managers Aviva Investors, Merrion Investment Managers and Legal & General Investment Management (LGIM). The first step is for you to choose which lifestyle strategy you want to aim for and then you choose which investment manager you prefer. Lifestyle strategies are currently available through the following products; Personal Pension; Executive Pension; Personal Retirement Bond and Corporate Plan. Technical terms used in the brochure are either explained in the brochure or in the glossary at the back. Warning: Warning: Warning: Warning: The value of your investment may go down as well as up. If you invest in these funds you may lose some or all of the money you invest. If you invest in these funds you will not have any access to your money before you retire. These funds may be affected by changes in currency exchange rates. Retirement Investments Insurance

2 Annuity Lifestyle Strategy from Aviva Investors The Annuity Lifestyle Strategy from Aviva Investors allows you access to a basket of funds, which will be automatically managed to ensure that the risk profile of your assets reduces over a twenty year period prior to your retirement. Each of the three Multi-Asset s at different stages over the twenty year de-risking period Aviva s Bond, and Aviva s Cash. Annuity de-risking over a 20 year period - in action MAF Dynamic (Risk 5). At the 20 year period, you enter the de-risking* stage and it proceeds as follows: years to NRA - Your contributions and your accumulated value will gradually de-risk into the MAF Strategic (Risk 4) over this 5 year period years to NRA - 100% of your contributions and your accumulated value will be invested in the MAF Strategic (Risk 4) years to NRA - Your contributions and your accumulated value will gradually de-risk into the MAF Cautious (Risk 3) over this five year period. 5 years to NRA - Your contributions and your accumulated value will gradually de-risk into 75% Aviva s Bond and 25% Aviva s Cash over this five year period. Annuity MAF Dynamic (Risk 5) MAF Strategic (Risk 4) MAF Cautious (Risk 3) Aviva s Bond Bond Aviva s Cash Cash

3 ARF Lifestyle Strategy from Aviva Investors The ARF Lifestyle Strategy from Aviva Investors allows you access to a basket of funds, which will be automatically managed to ensure that the risk profile of your assets reduces over a twenty year period prior to your retirement. Each of the three Multi-Asset s (MAFs) at different stages over the de-risking period, and Aviva s Cash. ARF de-risking over a 20 year period - in action MAF Dynamic (Risk 5). At the 20 year period, you enter the de-risking* stage and it proceeds as follows: years to NRA - Your contributions and your accumulated value will gradually de-risk into the MAF Strategic (Risk 4) over this 5 year period years to NRA - 100% of your contributions and your accumulated value will be invested in the MAF Strategic (Risk 4) years to NRA - Your contributions and your accumulated value will gradually de-risk into the MAF Cautious (Risk 3) over this 5 year period. 5 years to NRA - Your contributions and your accumulated value will gradually de-risk into 75% MAF Cautious (Risk 3) and 25% Aviva s Cash over this five year period. ARF MAF Dynamic (Risk 5) MAF Strategic (Risk 4) MAF Cautious (Risk 3) Aviva s Cash Cash The effect of changing the retirement age If you ask us to change your normal retirement age (within the Revenue limits), the fund allocations within the each of the lifestyle strategies will be altered to take account of the higher or lower number of years before you will retire.

4 Annuity Lifestyle Strategy from Legal & General The Annuity Lifestyle Strategy from Legal & General allows you access to a basket of funds, which will be automatically managed to ensure that the risk profile of your assets reduces over a twenty year period prior to your retirement. Each of the three L&G Multi-Index s at different stages over the twenty year de-risking period L&G Euro Bond Index, and Aviva s Cash. Annuity de-risking over a 20 year period - in action L&G Multi-Index V. At the 20 year period, you enter the de-risking* stage and it proceeds as follows: years to NRA - Your contributions and your accumulated value will gradually de-risk into the L&G Multi-Index IV over this 5 year period years to NRA - 100% of your contributions and your accumulated value will be invested in the L&G Multi-Index IV years to NRA - Your contributions and your accumulated value will gradually de-risk into the L&G Multi-Index III over this five year period. 5 years to NRA - Your contributions and your accumulated value will gradually de-risk into 75% L&G Euro Index Bond and 25% Aviva s Cash over this five year period. Annuity L&G MAF Multi-Index Dynamic (Risk V 5) L&G MAF Multi-Index Strategic (Risk IV 4) MAF L&G Cautious Multi-Index (Risk III 3) L&G Euro Index Bond Aviva s Cash Cash

5 ARF Lifestyle Strategy from Legal & General The ARF Lifestyle Strategy from Legal & General allows you access to a basket of funds, which will be automatically managed to ensure that the risk profile of your assets reduces over a twenty year period prior to your retirement. Each of the three L&G Multi-Index s at different stages over the de-risking period, and Aviva s Cash. ARF de-risking over a 20 year period - in action L&G Multi-Index V. At the 20 year period, you enter the de-risking* stage and it proceeds as follows: years to NRA - Your contributions and your accumulated value will gradually de-risk into the L&G Multi-Index IV over this 5 year period years to NRA - 100% of your contributions and your accumulated value will be invested in the L&G Multi-Index IV years to NRA - Your contributions and your accumulated value will gradually de-risk into the L&G Multi-Index III over this 5 year period. 5 years to NRA - Your contributions and your accumulated value will gradually de-risk into 75% L&G Multi-Index III and 25% Aviva s Cash over this five year period. ARF L&G MAF Multi-Index Dynamic (Risk V 5) L&G MAF Multi-Index Strategic (Risk IV 4) MAF L&G Multi-Index Cautious (Risk III Aviva s Cash 3) Cash * The first switch occurs on the same day of the month as the policy commencement date, immediately prior to the birthday that is twenty years before the NRA. The switching of funds occurs evenly and monthly between the whole months shown in the tables The effect of changing the retirement age If you ask us to change your normal retirement age (within the Revenue limits), the fund allocations within the each of the lifestyle strategies will be altered to take account of the higher or lower number of years before you will retire.

6 Annuity Lifestyle Strategy from Merrion Investment Managers The Annuity Lifestyle Strategy from Merrion Investment Managers allows you access to a basket of funds, which will be automatically managed to ensure that the risk profile of your assets reduces over a twenty year period prior to your retirement. Each of the three Merrion Multi-Asset s at different stages over the twenty year de-risking period Aviva s Bond Index, and Aviva s Cash. Annuity de-risking over a 20 year period - in action Merrion Multi-Asset 70. At the 20 year period, you enter the de-risking* stage and it proceeds as follows: years to NRA - Your contributions and your accumulated value will gradually de-risk into the Merrion Multi-Index 50 over this 5 year period years to NRA - 100% of your contributions and your accumulated value will be invested in the Merrion Multi-Asset years to NRA - Your contributions and your accumulated value will gradually de-risk into the Merrion Multi-Asset 30 over this five year period. 5 years to NRA - Your contributions and your accumulated value will gradually de-risk into 75% Aviva s Bond and 25% Aviva s Cash over this five year period. Annuity Merrion Multi-Asset 70 Merrion Multi-Asset 50 Merrion Multi-Asset 30 Aviva s Bond Aviva s Cash

7 ARF Lifestyle Strategy from Merrion Investment Managers The ARF Lifestyle Strategy from Merrion Investment Managers allows you access to a basket of funds, which will be automatically managed to ensure that the risk profile of your assets reduces over a twenty year period prior to your retirement. Each of the three Merrion Multi-Asset s at different stages over the de-risking period, and Aviva s Cash. ARF de-risking over a 20 year period - in action Merrion Multi-Asset 70. At the 20 year period, you enter the de-risking* stage and it proceeds as follows: years to NRA - Your contributions and your accumulated value will gradually de-risk into the Merrion Multi-Asset 50 over this 5 year period years to NRA - 100% of your contributions and your accumulated value will be invested in the Merrion Multi-Asset years to NRA - Your contributions and your accumulated value will gradually de-risk into the Merrion Multi-Asset 30 over this 5 year period. 5 years to NRA - Your contributions and your accumulated value will gradually de-risk into 75% Merrion Multi-Asset 30 and 25% Aviva s Cash over this five year period. ARF Merrion Multi-Asset 70 MAF Dynamic (Risk 5) Merrion MAF Strategic Multi-Asset (Risk 50 4) Merrion Multi-Asset 30 MAF Cautious (Risk 3) Cash Aviva s Cash The effect of changing the retirement age If you ask us to change your normal retirement age (within the Revenue limits), the fund allocations within the each of the lifestyle strategies will be altered to take account of the higher or lower number of years before you will retire.

8 Glossary Alternatives An investment that is not one of the three traditional asset types (equities, bonds and cash). Commercial property is an example of an alternative asset class. Annuity An annuity provides a regular income for the rest of your life, no matter how long you live. You can buy an annuity with the money from your pension fund. The annuity payments are taxable as income. ARF An Approved Retirement (ARF) is a personal retirement fund where you can keep your money invested after retirement, as a lump sum. You can withdraw from it regularly to give yourself an income. The ARF payments are taxable as income. Any money left in the fund after your death can be left to your next of kin. Assets/asset classes A category of similar types of financial instruments or investments, such as equities, bonds, cash or property. Bonds A type of IOU issued by governments, public companies or other institutions. The issuer agrees to repay the borrowed amount on an agreed date. Bonds usually pay a fixed interest rate over that time, so the bond holder earns an income from the bond. Diversification A strategy of spreading investment risk across a wide variety of assets in order to reduce the effect of a fall in the value of one asset on the wider portfolio. Equities (shares) A financial instrument that gives the holder part ownership in a company. Futures An agreement to buy an equity, bond, commodity or other financial asset at a future date for a specified price. In a fund, customers money is pooled with that of other investors. In turn, the fund could invest in anything from company shares to government bonds, property or a mixture of different assets or strategies. A fund manager oversees the fund and makes the decisions about which assets it should hold, in what quantities and when they should be bought and sold. Warning: The value of your investment may go down as well as up. Warning: If you invest in these funds you may lose some or all of the money you invest. Warning: If you invest in these funds you will not have any access to your money before you retire. Warning: These funds may be affected by changes in currency exchange rates. This brochure has been produced by Aviva Life & Pensions UK Limited. Great care has been taken to ensure the accuracy of the information it contains. However, the company cannot accept responsibility for its interpretation, nor does it provide legal or tax advice. This brochure is not a legal document and, should there be any conflict between the brochure and the policy document, the latter will prevail. Aviva Life & Pensions UK Limited, October Aviva Investors Global Services Limited, registered in England No Registered Office: St Helen s, 1 Undershaft, London, EC3P 3DQ. Authorised and regulated in the UK by the Financial Conduct Authority and a member of the Investment Association. Contact us at Aviva Investors Global Services Limited, St Helen s, 1 Undershaft, London, EC3P 3DQ. Legal & General Investment Management (LGIM), is the appointed Investment Manager of the L&G Multi-Index EUR s. LGIM is authorised and regulated by the Financial Conduct Authority. Merrion Capital Investment Managers Ltd (Trading as Merrion Investment Managers) is regulated by the Central Bank of Ireland. Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is authorised by the Prudential Regulation Authority in the UK and is regulated by the Central Bank of Ireland for conduct of business rules. Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is also regulated in the UK: by the Prudential Regulation Authority for prudential rules and, to a limited extent, by the Financial Conduct Authority for applicable UK conduct rules. Registered Branch Office in Ireland (No ) at One Park Place, Hatch Street, Dublin 2. Tel (01) Web Registered in England ( ) at Wellington Row, York, YO90 1WR