Choosing a pension fund
When you open a private pension or are enrolled into a workplace pension, you may be given a choice of pension funds, so that you can make a broad decision about how your money is invested. These are types of defined contribution pensions. Many people just opt for their pension provider’s default pension fund, which is designed to suit a wide range of people. If you haven’t made an active choice about what pension fund you’re invested in, you’re likely in a default fund.
Most pension funds invest in a range of assets to help manage your risk. Asset types include company shares (also known as equities), bonds, property and cash.
You can pick a pension fund based on things like investment type, investment location and risk profile, but all the investment decisions will be made by the money managers who are the pension fund experts. For example, State Street or BlackRock.
Things are a bit different when it comes to defined benefit pension schemes. Because these pension plans promise a fixed retirement income, investment decisions are made by the scheme’s board of trustees. You can find out more about the difference between defined contribution and defined benefit pensions here.
What’s a default pension fund?
A default pension fund is designed to suit most pension savers. Some are ‘lifestyle funds’ which means the investments are adjusted as you age. Others could be ‘target date funds‘ which are based on your target retirement age.
PensionBee has two default pension funds for different age groups - the Global Leaders Plan and the 4Plus Plan. When signing up, if you don’t choose a specific plan, you’ll be invested in one of these based on your age. If you’re under 50 and are still saving for retirement, you’ll be invested in the Global Leaders Plan. This is a predominantly equity-based plan to focus on growth in your accumulation years.
If you’re 50 or over when you sign up, you’ll be invested in the 4Plus Plan. In this plan, your money is invested in a range of assets and is actively managed by experts as you approach retirement. This is a medium risk plan which could be suited to anyone who is considering accessing their pension in the near to medium term.
More about default pension plans.
PensionBee pension funds
Our curated range of pension plans are designed to meet various savings needs. Whether you’re looking for a plan to help build a better world with our Climate Plan, or want to reduce risk as you approach retirement with our Preserve Plan.
Our plans all invest your money into diversified pension funds, but each has a different mix of assets and a different approach to investment decisions. You can find out more about the PensionBee plans here.
If you like the look of the PensionBee plans, sign up to PensionBee to combine your pensions into one easy-to-manage online plan.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
Last edited: 25-07-2025
