Investment pathways

How you invest your pension in retirement can significantly affect how long your money lasts. At Aberdeen, we offer a range of investment options to suit different retirement goals and levels of risk.

Whether you're planning to take your money soon or leave it invested for longer, it's important to understand your choices and review them regularly.

Your investment choices

With Investment Pathways, you can choose from four distinct fund options depending on your retirement objectives, and how you plan to use your pension in the next five years. You can see the four main ways to take your money and the Aberdeen fund options we offer in the table below.

Or, if you have the knowledge and confidence to do so, and the time to review regularly, you can choose your own funds from our full range. Remember, the pathway options aren’t personal advice. It’s important you check your chosen pathway matches your own goals before you invest, and if you’re unsure, speak to a financial adviser.

Investment Pathway options

What are Investment Pathways?

Investment Pathways are designed to help you make informed decisions about how to invest your pension savings when you start drawing money from your plan.

You can choose from four ready-made fund options based on how you expect to use your pension over the next five years:

Your retirement plan	Suggested pathway	Fund
I have no plans to touch my money in the next 5 years.	Investment Pathway Option 1	abrdn MyFolio Index IV Fund
I plan to use my money to set up a guaranteed income (annuity) within this next 5 years.	Investment Pathway Option 2	abrdn Short Dated Sterling Corporate Bond Tracker Fund
I plan to start taking my money as a long-term income within the next 5 years (drawdown).	Investment Pathway Option 3	abrdn MyFolio Index III Inst B Acc
I plan to take all my money within the next 5 years (withdrawal).	Investment Pathway Option 4	abrdn Sterling Money Market I Acc

These options are not personal advice. Make sure your choice aligns with your goals. If unsure, speak to a financial adviser.

How each pathway works

Pathway 1: Aims for long-term growth (5+ years) with a defined level of risk. Part of the MyFolio Index range. This fund is risk level IV, which aims to be the second highest risk fund in this range.
Pathway 2: Designed for those planning to buy an annuity. Tracks the Markit iBoxx Sterling Non-Gilts 1–5 Years Total Return Index.
Pathway 3: Suitable for those planning to draw a long-term income. Offers balanced growth potential (Risk Level III).
Pathway 4: Focuses on short-term income and capital preservation. Invests in cash deposits and money market instruments.

Choose from our full investment range

If you’re confident managing your own investments, you can choose from our full fund range. This gives you more flexibility to tailor your portfolio to your preferred level of risk and return.

Explore our full investment range

To buy, sell, or switch funds, call us on 0800 027 4675. We can’t offer advice, but we’ll carry out your instructions.

Frequently Asked Questions

Do I have to stay in an Investment Pathway for 5 years?

What happens to my Investment Pathway after 5 years?

Nothing. If your plans for the remaining pension money are the same, you don’t need to do anything. You can keep the same Investment Pathway option, bearing in mind that both your investment choice and how much money you take out can affect how long your money will last. That’s why it’s a good idea to get into the habit of reviewing your choice on a regular basis to make sure that it still meets your needs.

What if my plans change?

Is an Investment Pathway right for me?

Do I have to choose an Investment Pathway?

Things to Consider Before Investing

Before making a decision, think about:

How and when you plan to access your pension
Your attitude to risk
How long you can leave your money invested
Any charges that may apply

These factors can all influence how long your money will last.

Guidance and support

We can’t provide you with a personal recommendation but we can provide you with information and explain your options to help you make your own decisions. Independent advice can be found at:

Pension Wise: can offer free, impartial guidance from age 50. Visit www.moneyhelper.org.uk/pensionwise or call 0800 138 3944
Unbiased.co.uk: help with finding a financial adviser if you don’t already have one
MoneyHelper: allow you to compare ready-made Investment Pathway options with other providers. Visit www.moneyhelper.org.uk/pathways.

Important documents

You can find the Key Investor Information Document (KIID) for Aberdeen Investment Pathways below:

abrdn MyFolio Index IV Fund (KIID)abrdn Short Dated Sterling Corporate Bond Tracker Fund (KIID) abrdn MyFolio Index III Inst B Acc (KIID) abrdn Sterling Money Market I Acc (KIID)

Avoiding pension scams

Pension scams are on the rise. Be cautious of unsolicited offers, high-return promises, or pressure to act quickly.

Learn how to protect yourself and what to watch out for

Need more help?

If you're not sure what the right option is for you, we'd encourage you to speak to a financial adviser.

If you don't already have a financial adviser you can find one in your area at www.unbiased.co.uk

Governance advisory arrangement

Providers of Investment Pathways are required by the Financial Conduct Authority (FCA) to set up an Independent Governance Committee (IGC) or Governance Advisory Arrangement (GAA) to represent the interests of Pathway Investors. Aberdeen Adviser has appointed an independent GAA. The full GAA terms of reference are available for review here.

If you would like to make a direct representation to the GAA you can do so by emailing ZGL.gaacontact@zedra.com.

Choosing investment options in retirement