How is member's Pension Account invested?
The Construction Workers' Pension Scheme (CWPS) has a single investment strategy, which phases members’ Pension Accounts across a range of age-related investment funds. The Trustee invests members’ Pension Accounts in a range of age-related investment funds - when a member is many years from retirement, their Pension Account will be invested in growth focused funds and then as they near retirement their Pension Account is gradually invested in protection focused funds. This strategy is called Lifestyling and is done to protect the value of their fund as the members approach retirement.
All members' Pension Accounts are invested in funds that aim to:
- Provide greater protection for the benefits a member's Pension Account might provide
- Invest each member's Pension Account to match the options available to the member at retirement
The Trustee carries out regular reviews to make sure that CWPS continues to meet the needs of members and that it is run in line with current best practices. In a recent review in 2015, the Trustee looked at the way in which members’ Pension Accounts were invested across the range of age related investment funds within the Scheme and having taken advice from the Scheme investment consultants and pension advisors, the Trustee has now improved the way in which members’ Pension Accounts are invested to better provide for the benefits members might expect from the Scheme at retirement. The recent improvements to the age-related investment funds now takes into account what member's Pension Account value might be at retirement. Depending on the projected fund at retirement, the Trustee will then gradually move member's Pension Account into one of two investment paths. This is done to limit the exposure of the member's fund to sudden drops in investment markets which may reduce the value of the fund. The graph below shows how funds are typically invested for members who have a projected fund value of over €26,700.
The following graph shows how a member's Pension Account is typically invested over the lifetime of their pension saving:
There is also an alternative investment plan for member's who will have a lower projected fund value at retirement. The graph below shows how funds are typically invested for members who have a projected fund value of below €26,700. As you can see from age 55 on the assets are invested in Cash Ready assets as the member may want to avail of the cash option for their pension account.
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