Scottish Widows has launched two new workplace pension options, Lifetime Investment Plus and Lifetime Investment Extra, giving members access to private market investments.
The options sit within Scottish Widows’ Lifetime Investment range, which manages pension savings from growth through to retirement, adjusting investments based on members’ risk profile and chosen retirement outcome.
The Plus and Extra options introduce private market exposure through Scottish Widows’ Long-Term Asset Funds (LTAFs). In the growth phase, assets are invested in the CG SW Growth LTAF, managed by Aberdeen Investments, targeting higher-return assets such as private equity, venture capital, infrastructure and private credit.
As retirement approaches, investments move into the CG SW Diversified Credit LTAF, managed by BNP Paribas Asset Management, which focuses on lower-risk private credit.
Lifetime Investment Plus invests around 11 per cent in private markets, while Lifetime Investment Extra invests around 23 per cent.
Employers in the Scottish Widows Master Trust can choose any of the three Lifetime Investment options as a default, with members also able to self-select if they prefer.
Scottish Widows managing director pensions and retirement Graeme Bold says: “Bringing private markets into workplace pensions is a major milestone in helping customers make the most of their retirement savings. We believe investing in private markets increases diversification and can provide access to long term growth opportunities to support retirement incomes.
“As the provider of the UK’s biggest and longest‑running default pension scheme we have a deep understanding of what savers want and need. We’re broadening investment opportunities through our new Lifetime Investment Plus and Extra propositions to improve long‑term outcomes and giving members greater choice and flexibility.”
Scottish Widows chief investment officer Kevin Doran says: “With Scottish Widows Lifetime Investment Plus and Extra, members get access to investment opportunities that aren’t available on the stock market including innovative startups and those companies of the future, currently looking to scale. The portfolios will include investments in areas driving energy transition and adaptation, delivering benefits to members in their immediate environment, alongside future financial returns”