"Life cycle" structure

The default pension product will correspond to an investment portfolio that has a life cycle structure. This means that its composition will be personalised, diversified depending on each insured person’s age, and that it will involve higher risk for younger persons which will gradually decrease as each person nears pension age.

The life cycle structure is the most appropriate way to structure pension schemes because it incorporates the specific characteristics of each pension investment's timeframe, i.e. the fact that the savings of a person who is just starting his or her career have a long term timeframe while the savings of a person that has almost reached retirement age have a short term timeframe.

indicative portfolio composition depending on age

Indicative Life Cycle Structure

           Indicative visualizations