My Future

Managing risk each step of the way to help provide peace of mind for our customers during their journey to retirement

Saving for retirement is a necessary step in life – it can however be one of the most challenging things we ever do. Here at Aviva, we believe that everybody deserves to access the best possible retirement and that’s why we designed My Future, a well-diversified investment solution which manages risk for customers as they travel through their retirement journey.

The focus of My Future is on growing the members' pension savings in the earlier stages of the retirement journey, and therefore in the engine of the pension, the My Future Long Term Growth Fund. For this reason, the fund predominantly invests in company shares, including the shares of overseas companies and UK companies, to provide the potential for capital growth in members' savings.

The remainder of the My Future Long Term Growth Fund is invested in fixed interest assets ^{Footnote [1]}, and therefore in government and corporate bonds (both UK and overseas). This is to help safeguard members' savings should equity markets fall.

While growth is the focus in the growth stage, it's increasingly about capital preservation in the last 15 years of the retirement journey.

From 15 years before retirement, My Future starts to gradually move customers from the My Future Long Term Growth Fund to the My Future Growth Fund.

The My Future Growth Fund continues to provide the potential for growth, but invests a larger proportion in fixed income assets.

From 10 years before retirement, My Future gradually moves customers from the My Future Growth Fund to the My Future Consolidation fund.

The My Future Consolidation Fund invests predominantly in fixed income assets and therefore assets that traditionally have been less risky than company shares. This aims to preserve the value of members' savings as they approach retirement. All fund movements take place on a quarterly basis.

The value of a pension can go down as well as up, so members could get back less than has been paid in.

Please be aware that there's no guarantee any investment programme will benefit members' pension savings when they come to retire and we can't guarantee My Future is suitable for their individual needs or appetite for risk.

Designed to give customers choice

Together, the My Future Long Term Growth Fund, the My Future Growth Fund and the My Future Consolidation Fund make up the My Future 'Universal' strategy. This has been designed for members who have not yet decided how they want to take their pension savings at retirement.

The “Universal” strategy sits alongside alternative options that target annuity purchase, cash withdrawal and drawdown, enabling members to select the option best aligned with how they intend to use their pension savings in retirement. To support these options, the My Future strategy comprises Annuity, Cash Lump Sum and Drawdown Funds. The My Future Long Term Growth Fund is the growth fund in each of these options.

Managing risk for your employees throughout their retirement journey

The My Future funds aim to track the volatility of their respective benchmarks to ensure members’ savings are exposed to the most appropriate level of risk depending on where they are in their retirement journey.

You can find more details on the fund factsheets provided at the bottom of the page.

Strategic asset allocation overseen by global solutions provider BlackRock

Global fund manager and solutions provider BlackRock looks after the strategic asset allocation of My Future. BlackRock is one of the world’s leading providers of investment, advisory and risk management solutions. Its purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, BlackRock helps millions of people build savings that serve them throughout their lives.

BlackRock has significant expertise in managing multi-asset solutions, and its investment teams incorporate their knowledge of local markets and collaborate closely to bring together their views on market dynamics and asset classes

Sustainability

We believe that companies which are aware of and manage their environmental, social and governance risks, are better placed to create value for their shareholders over the long term. Below we describe the steps we've taken so far to incorporate ESG (Environmental, Social and Governance) factors across My Future.

In December 2022 we moved the cash in My Future from the BlackRock Sterling Liquidity Fund into a dedicated environmental fund, namely the BlackRock Liquid Environmentally Aware Fund, also known as LEAF.
In December 2024, we reached our target of having 100% of the equity allocation in the My Future funds, invested in BlackRock's range of ESG Insights equity funds. These funds seek to improve exposure to companies with higher ESG scores and to significantly reduce the carbon intensity of the portfolios.
The My Future Annuity Fund invests in the LGIM (PMC) Future World Annuity Fund. This fund is aligned with the L&G Future World Protection List. This means that companies involved in, or that derive certain parts of their revenue from areas such as controversial weapons and pure coal mining are excluded from the fund, along with certain companies which do not comply with the United Nations Global Compact screening agenda.

Alignment with Aviva’s baseline exclusions policy

My Future is aligned with Aviva’s baseline exclusions policy. This means that civilian firearms and controversial weapons, thermal coal, artic drilling and oil sands and tobacco are excluded from the underlying index tracker funds held in My Future Growth, Consolidation and Drawdown. While we would prefer to engage with businesses rather than divest, the sustainability risks to the climate, the planet and people from these sectors are so severe that they misalign with our corporate values and Responsible Investment Approach. Companies that do not meet the UN Global Compact, according to Aviva Investors, are also excluded from from the underlying funds in My Future.

Please refer to our baseline exclusion policy for more information and for exceptions.