Target Access Age

Would you want someone else deciding when you’re going to start taking your pension savings? Check your Target Access Age (TAA) , and make sure your money is invested in the right funds based on how close you are to spending your money.

Our video takes a look at what this could mean:

The highlights

  • The Target Access Age (TAA) is the age which you plan to take access your Citi pension savings.
  • Your TAA determines when your Lifestyle investments are moved to lower risk funds.
  • It’s good to check your TAA regularly and make sure it fits with your plans. Otherwise you may be exposed to a level of risk that’s wrong for the time you have left to invest.
  • Your TAA will be set at 60 unless you’ve changed it.
  • You can change your TAA at any time, and especially if your plans change.
  • If you change your TAA and the TAA is less than 10 years away, it will:
    • alter the mix of investment funds your pension savings are already invested in and
    • incur investment transaction costs - as when you switch any investments.

Retiring no longer means what it used to. You now have a lot more
flexibility when it comes to accessing your Citi pension savings.

The key considerations are when and how you want to take them.

  • When you want to take your savings

    The Lifestyle options aim to reduce some of the risks involved in investing. They do this by moving you into different funds as you get nearer to your Target Access Age, or TAA. This movement happens in the final 10 years before you reach your TAA.

    Unless you’ve changed it, your TAA is automatically set to 60. Any changes won’t affect when you can take your savings. It may affect how your Lifestyle pension savings are invested, because that’s centred around your TAA.

    Choosing your TAA is about weighing up risk and reward.

    Generally, the further away from retirement you are, the more risk your savings can handle. This is because you’ve got more time to build things back up again if there’s a fall in the markets.

    But as you get closer to retirement, your savings aren’t as resilient.

    So, aligning your TAA with when you want to take your savings is about being in the right place, at the right time. It involves keeping an eye on progress so you can make changes when you need to.

    Find out more
  • How your investments change with your Target Access Age (TAA).

    If you change your TAA, check to see how it might also change the investment funds you’re in.

    • When your TAA is more than 10 years away, your Lifestyle savings will be invested in higher risk funds. These are expected to provide higher returns. Changing your TAA won’t immediately change where you are invested (unless you choose a TAA that’s less than 10 years away).
    • Once you are within 10 years of your TAA, your Lifestyle savings will gradually move to lower risk funds. These aim to reduce your exposure to any extreme ups and downs. Changing your TAA now will immediately change where you are invested.

    Remember: When you change your investments, you may incur transaction costs.

  • Balancing risk and reward

    If your TAA isn’t in line with the date you actually plan to take your money, you may be taking more risk with your savings than you need to. That might mean missing out if markets rise. Or seeing the value of your investments fall without the time for them to bounce back.

    Your pension saving is a long-term investment, so if your retirement is some way off yet, don’t panic if markets are turbulent.

    Remember: you can alter your TAA as and when you need to, especially as your life plans evolve.

    We always recommend speaking to an independent financial adviser when you’re considering your investments and your plans for the future.

    Here’s a good place to start if you need to find one: Financial Advice

Remember: If you’re thinking about taking your savings in the next 10 years, make sure you check that your TAA is correct. It might be set at an age that’s too close or too far away. That may mean you are invested in funds that expose you to a level of risk that’s wrong for the time you have left to invest.

Remember: Your TAA will only be used to allocate your Lifestyle investments, and the date they’ll complete their transition into lower risk investments, ready for you to take your money. You can decide to take your money before or after the TAA age you select.

You can review your TAA by going to MyCitiPension, then to My Pension > My Investments. You can change it here too.