Defined Contribution (DC) costs and charges for UKRF members

The Trustee has prepared illustrations of the cumulative impact of costs and charges on the assumed investment performance for a range of UKRF DC funds. Along with these illustrations, the Trustee has also provided information on how they have assessed the value for members provided by the UKRF, how the default investment funds offered to members are designed and governed, and information on the costs of investing in each fund. Members of the UKRF can view previous versions of this information by accessing archived versions of the Trustee Report and Accounts which are available on the .

Value for members assessment

In line with pension regulations, the Trustee arranges for an independent value for members assessment to be carried out each year of whether the DC funds of the UKRF offer value for its members. The Trustee was pleased to note that this independent assessment reported that the UKRF offers excellent value for its DC members.

The DC default investment funds and self-select range

The Trustee regularly reviews the design of the UKRF’s default investment funds and their investment objectives. A triennial review of the UKRF Lifestyle Fund range was carried out in 2019.

Charges and transaction costs

The Trustee has collated details of the investment manager charges and transaction costs, as defined by regulations, for each of the UKRF’s DC investment funds. This includes a description of what these charges and costs comprise and a list of the charges and costs for each of the UKRF’s investment funds for the year to 30 September 2021.

DC members of the UKRF do not pay towards the administration costs of the UKRF and therefore it is only these investment costs which are deducted from members’ retirement savings.

Effect of charges on members’ funds

The Trustee has produced a set of illustration tables to show the possible impact that investment costs and charges may have on members’ retirement savings. These illustrations have been produced in line with guidance from the Department for Work and Pensions dated October 2021.

The Trustee recommends that members look at how to read the illustration tables before reviewing the illustrations.

The illustrations broadly represent the UKRF’s DC membership when considering age, current retirement savings amounts, the funds members have chosen to invest in and the different charges involved.

How to read the illustration tables

It is important to note that the illustration tables are designed to show the potential impact of costs and charges on investment returns. All of the illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. In reality the value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members' retirement savings is not reflected in these illustrations.

The illustrations also assume the investment charges and transaction costs remain the same and are deducted each year. In reality the costs and charges will fluctuate each year.

The illustrations are not designed to provide UKRF members with a personalised projection of what their benefits may be worth at retirement. DC members of the UKRF should review their latest benefit statement which is available on the .

The diagrams below show you how to read the tables.

UKRF Lifestyle Fund range glide path 2022 – 2031 Funds

An image showing how to read the Fund Illustration tables

In this example, if a member has invested £2,500 in this fund for one year on 30 September 2021, their fund could grow to £2,508 if no charges are applied but to £2,495 with charges applied.

Self-select funds and Lifestyle Mature Funds

An image showing how to read the Fund Illustration tables

In this example, if a member has invested £2,500 in this fund for one year on 30 September 2021, their fund could grow to £2,585 if no charges are applied but to £2,584 with charges applied.

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

More information on the DC investment funds available for UKRF members

Members of the UKRF can check where the UKRF's DC funds are invested and their performance on the .

Statement of Investment Principles

Following consultation with Barclays Bank PLC, the Trustee has agreed a statement of investment principles for the UKRF that sets out how the Trustee invests.

Man at a desk

Value for members assessment

Regulations require the Trustee to assess, at least annually, whether the DC elements of the UKRF deliver value for members. In the Trustee’s view, charges and transaction costs are likely to represent good value for members where the combination of member-borne costs and what is provided for the costs is appropriate for the membership as a whole, and when compared to other options available in the market.

The Trustee has engaged Barnett Waddingham, a specialist DC consultant, to advise the Trustee on DC governance matters and in particular to carry out an independent value for members assessment in line with the Pensions Regulator (TPR) DC Code of Practice 13.

The Trustee was pleased to note again that the 2021 independent assessment concluded that the UKRF continues to offer excellent value to its members, given the range, quality and nature of the services provided. The key reasons for this conclusion include the robust governance processes applied to the UKRF and that members only pay the investment costs of the funds in which they are invested, which are very competitive when compared to other schemes of this nature. All other running costs are paid for by the UKRF.

Recognising that low cost does not necessarily mean good value, the assessment also considered the value for members delivered by the UKRF’s DC investment arrangements, i.e. those services for which the costs and charges are deducted from members’ funds. All relevant aspects of the UKRF’s investments were reviewed, including the aspects where the costs are borne by the UKRF, i.e. the governance structure, design and monitoring arrangements. Consideration was also made of the member-borne costs relative to other options in the market. The assessment reported no areas in which the DC investment arrangements detracted value.

In addition, the Trustee believes that the transaction costs detailed in this statement provide value for members, as the ability for the investment managers to transact forms an integral part of the investment process, and gives potential for greater investment returns net of charges over time. The Trustee continues to monitor the levels of transaction costs.

Outside of the independent assessment, the Trustee undertook quarterly monitoring of the UKRF fund range, including the default funds, supported by its investment advisers. This assessed whether the performance of the funds available to members is broadly consistent with their stated objectives and the monitoring process did not highlight any funds for removal.

In 2018, the Trustee completed a detailed review of the value for members offered by the AVC policies that were historically available to invest in and which are held outside the main UKRF DC investment options. A proportionate value for members assessment has been conducted in subsequent years.

The Trustee is confident that the AVC policies continue to offer reasonable value to members and does not expect the value for members to change. The key reasons for this conclusion remain that members have benefited from a capital guarantee and positive investment returns in recent years, despite higher levels of fees, and their funds are invested with major insurance companies with open books of business.

In 2021, the Trustee reviewed the type and level of protection for members’ investments held by the UKRF. A similar review was completed in 2018. A key focus of the 2021 review was to understand whether the changes to the UKRF Diversified Growth Fund in 2020 had impacted the level of protection for members. The Trustee concluded that there continue to be appropriate protections and segregation of assets in place, and that the changes to the UKRF Diversified Growth Fund have resulted in an increased level of directly held investment which should have a positive impact on the investment security. In carrying out this review the Trustee reviewed:

  • The legal structure of each fund to understand the protections in place in the event of insolvency of either the investment manager or custodian;
  • The levels of indemnity insurance in place at the investment managers and custodian; and
  • The rules of the Financial Services Compensation Scheme (FSCS) to understand which of the UKRF’s DC investment funds may be able to make a claim on the FSCS.

The Trustee will continue to monitor the type and level of protection of assets across the UKRF’s investment fund range. In the event that any changes are made to the fund range in future, the Trustee will consider and determine if a fresh review of these protections is required.

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Woman looking through a magnifying glass

The DC default investment funds and self-select range

Members who did not make an active investment decision on joining the UKRF had their contributions invested in the UKRF Lifestyle Fund ranges, which are series of funds that offer members greater flexibility to target the year in which they expect to access their pension savings. These were the “default investment funds” for the UKRF over the reporting period. The Trustee has also made available a range of other DC investment options that members can choose to invest in (known as the self-select range).

The Trustee is responsible for the UKRF’s investment governance. This includes setting the investment objective for the default investment funds, which considers the needs of the membership in conjunction with the Trustee’s investment objectives. The Trustee concluded the triennial review of the UKRF Lifestyle Fund ranges in September 2019 which covered:

  • A review of both the strategy and the performance of the default investment funds, and the extent to which the return on the investments (after deduction of investment charges) was consistent with the Trustee’s aims and objectives for the default funds;
  • An assessment of the performance of each investment option available through the self-select range; and
  • A review of the membership profile including consideration of the number and risk profile of investment funds offered to members as an alternative to the default investment funds.

The review confirmed that the default investment funds remained appropriate based on the UKRF’s member demographics, fund performance, wider industry experience and regulatory developments. As a result, no changes were made to the default investment fund design, which had been launched in February 2017 following the previous triennial review. The next review is scheduled for 2022.

There are two UKRF Lifestyle Fund ranges in place, both of which are classed as default investment funds.

  • The UKRF Lifestyle Fund range – This default investment fund was launched in February 2017 and is open to all members. Members many years from retirement are invested in a diversified mixture of assets, with the aim of generating capital growth ahead of inflation over the long term. Members at their target retirement date are invested in a range of investments with the aim of being broadly aligned to the wider range of options now available when accessing retirement savings. During the 10-year period before a member’s target retirement date, members’ investments are phased between these two allocations (this is known as the glide path). Members should select the UKRF Lifestyle Fund that is closest to the date at which they plan to access their retirement savings. For example, if a member was born in 1975 and planned to access their retirement savings at age 65, their target retirement date would be 2040 and they should select the UKRF Lifestyle 2040 Fund.
  • The UKRF Lifestyle (Closed) Fund range – This default investment fund closed to new investors in February 2017. Members at their target retirement date are invested predominantly in bonds and cash with the aim of providing a broad compromise between capital protection and tracking movements in annuity prices. This fund range only comprises the UKRF Lifestyle (Closed) Mature Fund.

The investment objective of both UKRF Lifestyle Fund ranges is to generate capital growth over the long term with increasing levels of capital and retirement income protection as a member approaches their target retirement date. Investments in the UKRF Lifestyle Fund ranges are made through index-tracking funds, derivatives or segregated assets.

Changes to the UKRF Diversified Growth Fund

The UKRF Lifestyle Fund range comprises underlying pooled investment funds, which includes the UKRF Diversified Growth Fund, to some degree, throughout the glide path. The UKRF Diversified Growth Fund is also available as a self-select fund. From December 2020, the Trustee made some changes to the investments held by the UKRF Diversified Growth Fund to reflect the application of the Trustee’s RI policy.

RI is an approach to managing investments that aims to incorporate environmental, social and governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns. RI includes considering environmental factors (such as climate change), and how well companies are governed and impact wider society (for example, labour practices and gender balance).

The UKRF already incorporated the Trustee’s RI policy into its investment decision-making and by taking this approach, the UKRF holds investments that, for example, acknowledge climate risk and contribute to meeting climate change targets while also being financially sound and consistent with the Trustee's long-term strategy.

The Trustee believes that these changes will have a positive impact on the long-term performance as sustainable business practices are expected to lead to better decision making and ultimately improve returns for members.

The changes to the UKRF Diversified Growth Fund also resulted in the following:

  • ESG criteria will be used to screen the investments in the UKRF Diversified Growth Fund and identify material ESG risks and future growth opportunities. This creates better protection against ESG risks, which over the longer term should improve returns.
  • The UKRF Diversified Growth Fund manager, BlackRock, proactively votes and engages with the entities and markets in which it invests on behalf of the Trustee.
  • In addition to the above changes, the Trustee will ensure it continues not to invest in companies with involvement in activities that do not demonstrate good corporate practice or which violate internationally recognised laws or conventions.
  • Further information about this change was provided to members that held investments in the UKRF Diversified Growth Fund (including members invested in the UKRF Lifestyle Fund range) in November 2020 and can be read here.

Further information about the default and other investment options

More information about the DC investment funds can be found in the Statement of Investment Principles and in the Implementation Statement.

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Charges and transaction costs

The Trustee is required to make an assessment of the charges and transaction costs borne by members over the reporting period, for each of the investment funds in which members are invested, and the Trustee monitors these, to the extent updated information is available, on a regular basis. The Trustee is also required to assess the extent to which the services these charges and costs relate to, deliver value for members. Details on the approach taken by the Trustee and the results of this assessment are included in the Value for members assessment section.

DC investment funds available within the UKRF

The tables below show the total expense ratio and transaction costs for each investment fund available to members of the UKRF:

  • Total expense ratio – This is the charge levied by the investment manager each year to manage the fund; effectively it is the cost of being in the investment fund. This is a measure of the provider’s total costs for managing and operating the fund and consists primarily of management fees and additional expenses, such as fixed trading fees, legal fees, and the manager’s auditor and custody fees. The total expense ratio for the UKRF’s default investment funds varies depending on how far the member is from their target retirement date, as the mix of underlying assets changes.
  • Transaction costs – For all funds, including the default investment funds, there are additional transaction costs paid by members. These arise when the investment managers trade within the funds and include commission, taxes, levies and the cost of stock lending. The level of transaction costs can vary depending on whether an investment fund is actively or passively managed. Transaction costs can also vary from year to year depending on the amount of transactional activity carried out by a fund.

For the UKRF Lifestyle Fund range the table shows:

  • The costs for the UKRF Lifestyle Mature Fund (where assets are invested if members do not access their retirement savings at their target date);
  • The costs for each of the ten funds currently on the glide path (the UKRF Lifestyle 2022 – 2031 Funds); and
  • The cost of the funds that have yet to enter the glide path (the UKRF Lifestyle 2032 – 2062 Funds).

For the UKRF Lifestyle (Closed) Fund range the table shows the costs for the UKRF Lifestyle (Closed) Mature Fund (where assets are invested if members do not access their retirement savings at their target date).

Transaction costs for each default and self-select fund have been obtained for the reporting period. Further information on each investment fund can be found in the individual fund factsheets which are available to members on or from the .

The UKRF Lifestyle Fund range (default)

Fund Type of management* Total expense ratio for year to 30 September 2021 Transaction costs for year to 30 September 2021 Total costs for year to 30 September 2021
FundUKRF Lifestyle Mature Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.18% Transaction costs for year to 30 September 20210.13% Total costs for year to 30 September 20210.31%
FundUKRF Lifestyle 2022 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.19% Transaction costs for year to 30 September 20210.15% Total costs for year to 30 September 20210.34%
FundUKRF Lifestyle 2023 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.20% Transaction costs for year to 30 September 20210.16% Total costs for year to 30 September 20210.36%
FundUKRF Lifestyle 2024 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.21% Transaction costs for year to 30 September 20210.18% Total costs for year to 30 September 20210.39%
FundUKRF Lifestyle 2025 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.22% Transaction costs for year to 30 September 20210.19% Total costs for year to 30 September 20210.41%
FundUKRF Lifestyle 2026 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.23% Transaction costs for year to 30 September 20210.21% Total costs for year to 30 September 20210.44%
FundUKRF Lifestyle 2027 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.24% Transaction costs for year to 30 September 20210.23% Total costs for year to 30 September 20210.47%
FundUKRF Lifestyle 2028 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.25% Transaction costs for year to 30 September 20210.24% Total costs for year to 30 September 20210.49%
FundUKRF Lifestyle 2029 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.26% Transaction costs for year to 30 September 20210.26% Total costs for year to 30 September 20210.52%
FundUKRF Lifestyle 2030 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.27% Transaction costs for year to 30 September 20210.28% Total costs for year to 30 September 20210.55%
FundUKRF Lifestyle 2031 Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.27% Transaction costs for year to 30 September 20210.29% Total costs for year to 30 September 20210.56%
FundUKRF Lifestyle 2032 – 2062 Funds Type of management*Active and passive Total expense ratio for year to 30 September 20210.28% Transaction costs for year to 30 September 20210.30% Total costs for year to 30 September 20210.58%

The UKRF Lifestyle (Closed) Fund range (default)

Fund Type of management* Total expense ratio for year to 30 September 2021 Transaction costs for year to 30 September 2021 Total costs for year to 30 September 2021
FundUKRF Lifestyle (Closed) Mature Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.11% Transaction costs for year to 30 September 20210.00% Total costs for year to 30 September 20210.11%

Other DC investment options (self-select)

Fund Type of management* Total expense ratio for year to 30 September 2021 Transaction costs for year to 30 September 2021 Total costs for year to 30 September 2021
FundUKRF UK Equity Index Fund Type of management*Passive Total expense ratio for year to 30 September 20210.06% Transaction costs for year to 30 September 20210.12% Total costs for year to 30 September 20210.18%
FundUKRF Global (ex-UK) Equity Index Fund Type of management*Passive Total expense ratio for year to 30 September 20210.07% Transaction costs for year to 30 September 2021-0.02%** Total costs for year to 30 September 20210.05%
FundUKRF Emerging Markets Equity Index Fund Type of management*Passive Total expense ratio for year to 30 September 20210.28% Transaction costs for year to 30 September 2021-0.04%** Total costs for year to 30 September 20210.24%
FundUKRF Sustainable Equity Fund Type of management*Active Total expense ratio for year to 30 September 20210.78% Transaction costs for year to 30 September 20210.02% Total costs for year to 30 September 20210.80%
FundUKRF Diversified Growth Fund Type of management*Active Total expense ratio for year to 30 September 20210.26% Transaction costs for year to 30 September 20210.30% Total costs for year to 30 September 20210.56%
FundUKRF Sterling Corporate Bond Fund Type of management*Active Total expense ratio for year to 30 September 20220.22% Transaction costs for year to 30 September 20220.09% Total costs for year to 30 September 20220.31%
FundUKRF Over 15 Years UK Gilt Index Fund Type of management*Passive Total expense ratio for year to 30 September 20210.08% Transaction costs for year to 30 September 2021-0.01%** Total costs for year to 30 September 20210.07%
FundUKRF Over 5 Years Index-Linked UK Gilt Index Fund Type of management*Passive Total expense ratio for year to 30 September 20210.08% Transaction costs for year to 30 September 20210.08% Total costs for year to 30 September 20210.16%
FundUKRF Mixed (Gilts, Cash and Growth) Fund Type of management*Active and passive Total expense ratio for year to 30 September 20210.13% Transaction costs for year to 30 September 20210.04% Total costs for year to 30 September 20210.17%
FundUKRF Cash Fund Type of management*Active Total expense ratio for year to 30 September 20210.06% Transaction costs for year to 30 September 20210.01% Total costs for year to 30 September 20210.07%

* In a passively managed fund, the investment manager aims to match the return of a specific index. They do this by investing in assets that are broadly the same as those in the index. An active manager uses their expertise to select investments that they believe will perform better than an index over a period of time. As active funds require more time and involvement from the manager they tend to have higher costs than passive funds. The UKRF Lifestyle Fund ranges and the UKRF Mixed (Gilts, Cash and Growth) Fund invest in a mixture of actively and passively managed funds.

** The FCA has prescribed a methodology for calculating transaction costs known as ‘slippage’. This methodology captures explicit costs incurred when carrying out a transaction, such as taxes and broker commissions. It also captures implicit costs such as the change in the price of the asset being traded during the period the transaction is being carried out. This methodology can result in negative transaction costs where for example other market activity pushes the price of the asset being traded down, whilst the transaction was in progress, resulting in the asset being purchased for a lower price than when the trade was initiated.

External with-profit AVC policies

In addition, as noted in the Value for members assessment section, some UKRF members have invested AVCs in the past in a number of external insurance policies (known as ‘with-profit’ funds, which are covered in the table below). These policies provide DC benefits to members and charges are deducted from the members’ savings. The table below shows the charges and costs for these funds.

Fund Information on charges
FundAviva (ex Norwich Union) Information on chargesThere are three with-profit investments within the policy (Aviva With-Profit (NU) Standard Series 01, Series 02 and Series 04) depending upon the date in which investment in the policy started. Aviva has reported the following costs for the period 1 October 2020 to 30 September 2021:

The Series 01 fund has an administration charge of 0.88% and a total transaction cost of 0.075% (comprised of a “buying and selling” transaction cost of 0.073% and a “lending and borrowing” cost of 0.002%).

The Series 02 fund has a 0% administration charge and a total transaction cost of 0.095% (comprised of a “buying and selling” transaction cost of 0.094% and a “lending and borrowing” cost of 0.001%).

The Series 04 fund has an administration charge of 0.88%, and a total transaction cost of 0.095% (comprised of a “buying and selling” transaction cost of 0.094% and a “lending and borrowing” cost of 0.001%).
FundPhoenix Life Information on chargesPhoenix Life has reported total costs of 0.13% for the year to 30 June 2021.
FundAviva (ex Friends Life) Information on chargesAviva has reported an administration charge of 2.75% and a total transaction cost of 0.034% (comprised of a “buying and selling” transaction cost of 0.033% and a “lending and borrowing” cost of 0.001%) for the period 1 October 2020 to 30 September 2021.

The AVC providers have been unable to share cost data for the full 2020/21 Fund year. Therefore, the most up to date cost data available has been reported in the above table.

With-profit funds work in a different way to the other funds available through the UKRF. Savings in these funds are invested in a pool with other investors and participate in the performance of the with-profit fund. Investment returns are ‘smoothed’, meaning that in years of high fund performance some profits (or returns) are held back with the aim that a return can continue to be paid in times of adverse investment conditions. Returns under with-profit funds are normally passed on through the application of bonuses, and these come in the form of ‘Regular’ and ‘Final’ bonuses which vary depending on the performance of the fund. The charges deducted from the with-profit funds include the cost of administering the fund, whereas the Total Expense Ratio applied to the UKRF investment funds just refers to the investment costs.

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Effect of charges on members’ funds

Regulations require that the Trustee provides illustrative examples of the cumulative effect over time of the charges and costs shown above on the value of a representative sample of members’ DC savings. This page provides these illustrations for a range of investment funds and a range of different member DC pot sizes that are broadly comparable to the most common DC pot sizes currently found in the UKRF. The Trustee followed statutory guidance when preparing these illustrations.

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

Recent fund performance details can be found in the UKRF Annual Report on page 92.

Illustration assumptions

The table below shows the assumed rates of growth used in the illustrations. These are the same headline assumed growth rates as used in the annual member benefit statements. The illustrations work by assuming the growth rates in the table are achieved each year, while the total expense ratio and the average transaction costs for the last four reporting periods are deducted each year. In reality the investment returns and costs and charges will fluctuate each year. For reference the table below also shows the actual returns achieved in the five years to 30 September 2021.

It should be noted that the assumed rates of growth are reviewed annually and adjusted to reflect up to date market conditions. This year, for some of the DC funds, the assumed rates of growth used are lower than those used in the 2020 statement and in some cases are negative after accounting for inflation (assumed to be 2.5%). This means that in some cases pot sizes will be projected to reduce over time in real terms.

The UKRF investment funds for which illustrations have been provided Assumed rates of growth (per year) above inflation (assumed to be 2.5%) Actual returns for fund in five years to 30 September 2021 Average transaction costs (over the previous four years)
* Actual performance is the same for all funds as all were more than 10 years from maturity date.
** As these funds launched in March 2017, five-year performance is not available.
The UKRF investment funds for which illustrations have been provided UKRF Lifestyle Fund range
2032 – 2062 Funds
Assumed rates of growth (per year) above inflation (assumed to be 2.5%) 1.5% while the fund is more than 10 years from its maturity date. Between 1.44% and 0.09% while the fund moves through the 10-year glide path. Actual returns for fund in five years to 30 September 2021 5.9%* Average transaction costs(over the previous four years) 0.13%
The UKRF investment funds for which illustrations have been provided UKRF Lifestyle Fund range glide path Funds
2022 – 2031
Assumed rates of growth (per year) above inflation (assumed to be 2.5%) 1.44% (2031 Fund) – 0.09% (2022 Fund) depending on the fund invested in. Actual returns for fund in five years to 30 September 2021 2022 Fund – 3.6%
2023 Fund – 3.9%
2024 Fund – 4.2%
2025 Fund – 4.6%
2026 Fund – 4.9%
2027 Fund – 5.2%
2028 Fund – 5.4%
2029 Fund – 5.5%
2030 Fund – 5.6%
2031 Fund – 5.9%
Average transaction costs(over the previous four years) 2022 Fund – 0.07%
2023 Fund – 0.08%
2024 Fund – 0.08%
2025 Fund – 0.09%
2026 Fund – 0.09%
2027 Fund – 0.10%
2028 Fund – 0.11%
2029 Fund – 0.11%
2030 Fund – 0.12%
2031 Fund – 0.12%
The UKRF investment funds for which illustrations have been provided UKRF Lifestyle Mature Fund Assumed rates of growth (per year) above inflation (assumed to be 2.5%) 0.00% Actual returns for fund in five years to 30 September 2021 4.3% (4 years **) Average transaction costs(over the previous four years) 0.06%
The UKRF investment funds for which illustrations have been provided UKRF Lifestyle (Closed) Mature Fund Assumed rates of growth (per year) above inflation (assumed to be 2.5%) -1.00% Actual returns for fund in five years to 30 September 2021 1.50% Average transaction costs(over the previous four years) <0.01%
The UKRF investment funds for which illustrations have been provided UKRF Mixed (Gilts, Cash and Growth) Fund Assumed rates of growth (per year) above inflation (assumed to be 2.5%) -1.00% Actual returns for fund in five years to 30 September 2021 2.30% Average transaction costs(over the previous four years) 0.02%
The UKRF investment funds for which illustrations have been provided UKRF Global (ex UK) Equity Index Fund Assumed rates of growth (per year) above inflation (assumed to be 2.5%) 3.50% Actual returns for fund in five years to 30 September 2021 13.90% Average transaction costs(over the previous four years) <0.01%
The UKRF investment funds for which illustrations have been provided UKRF Diversified Growth Fund Assumed rates of growth (per year) above inflation (assumed to be 2.5%) 1.50% Actual returns for fund in five years to 30 September 2021 6.00% Average transaction costs(over the previous four years) 0.13%
The UKRF investment funds for which illustrations have been provided UKRF Sustainable Equity Fund Assumed rates of growth (per year) above inflation (assumed to be 2.5%) 3.50% Actual returns for fund in five years to 30 September 2021 12.20% Average transaction costs(over the previous four years) 0.02%
The UKRF investment funds for which illustrations have been provided UKRF Over 15 Years UK Gilt Index Fund Assumed rates of growth (per year) above inflation (assumed to be 2.5%) -1.50% Actual returns for fund in five years to 30 September 2021 1.80% Average transaction costs(over the previous four years) 0.00%
The UKRF investment funds for which illustrations have been provided UKRF Cash Fund Assumed rates of growth (per year) above inflation used (assumed to be 2.5%) -1.00% Actual returns for fund in five years to 30 September 2021 0.40% Average transaction costs(over the previous four years) 0.01%

Guidance to the illustrations

The following notes on the illustrations should also be read:

  1. Projected pot sizes are shown in today’s terms and do not need to be reduced further for the effects of future inflation.
  2. The starting pot sizes of £2,500, £10,000 and £35,000 have been selected as they broadly reflect the 25th percentile, median and 75th percentile respectively based on membership demographics in 2021. The pot sizes have been updated from those used in 2020 (£1,500, £8,000 and £27,500) to reflect the latest membership profile.
  3. Inflation is assumed to be 2.5% per year.
  4. Unless stated each illustration assumes up to 45 years of membership to cover how long the youngest UKRF member has before reaching state pension age (assumed to be 68).
  5. No future contributions are included in the illustrations.
  6. Values shown are estimates and not guaranteed.
  7. Each of the illustrations allow for the future impact of inflation which is assumed to be 2.5%. This is why the real terms value of the savings pot does not increase over time for certain funds.
  8. The starting date for the illustrations is 30 September 2021.
  9. The rates of growth used in the illustrations are calculated by reference to the Financial Reporting Council’s AS TM1.
  10. The Trustee is aware that statutory guidance requires the transaction costs used in the illustrations to be based on an average of the past 5 years’ transaction costs, however the investment managers were unable to provide data for this period. The illustrations shown have been based on an average of the past 4 years’ transaction costs.

The illustrations are presented in two different ways:

  • For the UKRF Lifestyle Funds the illustrations should be read based on the number of years until the member's chosen fund reaches its target date. This is because the underlying asset allocation in these funds changes over time (the ‘glide path’) and this needs to be reflected in the illustrations.
  • For the self-select funds and the UKRF Lifestyle Mature Funds there is no glide path and therefore the illustrations should be read based upon the number of years (from 30 September 2021) that a member expects to be invested in those funds.

Illustrations are provided for the UKRF investment funds that meet the criteria below. These are the funds that:

  • Have the lowest cost;
  • Have the highest cost;
  • Are the most popular in terms of number of members invested;
  • Have the highest assumed growth rate;
  • Have the lowest assumed growth rate; and
  • Are part of the default investment range.

Illustrations for the open default investment fund

UKRF Lifestyle Fund 2032 – 2062 Funds

An illustration is provided for these funds as they are part of the default investment fund.

  • If a member is invested in one of these funds then they are at least 10 years from the date at which they plan to access their retirement savings, therefore, this illustration starts at 10 years to retirement.
  • While a member is more than 10 years from their target retirement date, these funds invest in the UKRF Diversified Growth Fund which aims to grow the value of their DC retirement savings over the long term. Then, during the 10 years leading up to their target retirement date, it steadily introduces gilts and cash investment allocations before they reach their target retirement date. This is known as the glide path and the illustrations include the effect of these changes to the underlying investments.
  • If the member does not access their savings when their fund reaches its target date, their savings will be moved to the UKRF Lifestyle Mature Fund and they should review the relevant illustration to see the impact this would have on their retirement savings.
  • As these are indicative illustrations members should choose the number of years that is closest to their actual target retirement date. For example, as the starting date for the illustration is 30 September 2021, if a member’s target retirement date was 2041, they should review the 20 year line of the illustration.
Years from 30 September 2021 until Lifestyle Fund reaches its target date Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund, and reaches their target retirement date in ten years’ time, their fund could grow to £2,695 if no charges are applied but to £2,610 with charges applied.
Years from 30 September 2021 until Lifestyle Fund reaches its target date10 Starting pot size of £2,500 - before charges£2,695 Starting pot size of £2,500 - after charges£2,610 Starting pot size of £10,000 - before charges£10,780 Starting pot size of £10,000 - after charges£10,439 Starting pot size of £35,000 - before charges£37,731 Starting pot size of £35,000 - after charges£36,536
Years from 30 September 2021 until Lifestyle Fund reaches its target date15 Starting pot size of £2,500 - before charges£2,898 Starting pot size of £2,500 - after charges£2,752 Starting pot size of £10,000 - before charges£11,593 Starting pot size of £10,000 - after charges£11,007 Starting pot size of £35,000 - before charges£40,574 Starting pot size of £35,000 - after charges£38,525
Years from 30 September 2021 until Lifestyle Fund reaches its target date20 Starting pot size of £2,500 - before charges£3,116 Starting pot size of £2,500 - after charges£2,902 Starting pot size of £10,000 - before charges£12,466 Starting pot size of £10,000 - after charges£11,606 Starting pot size of £35,000 - before charges£43,631 Starting pot size of £35,000 - after charges£40,622
Years from 30 September 2021 until Lifestyle Fund reaches its target date25 Starting pot size of £2,500 - before charges£3,351 Starting pot size of £2,500 - after charges£3,060 Starting pot size of £10,000 - before charges£13,405 Starting pot size of £10,000 - after charges£12,238 Starting pot size of £35,000 - before charges£46,918 Starting pot size of £35,000 - after charges£42,833
Years from 30 September 2021 until Lifestyle Fund reaches its target date30 Starting pot size of £2,500 - before charges£3,604 Starting pot size of £2,500 - after charges£3,226 Starting pot size of £10,000 - before charges£14,415 Starting pot size of £10,000 - after charges£12,904 Starting pot size of £35,000 - before charges£50,453 Starting pot size of £35,000 - after charges£45,165
Years from 30 September 2021 until Lifestyle Fund reaches its target date35 Starting pot size of £2,500 - before charges£3,875 Starting pot size of £2,500 - after charges£3,402 Starting pot size of £10,000 - before charges£15,501 Starting pot size of £10,000 - after charges£13,607 Starting pot size of £35,000 - before charges£54,255 Starting pot size of £35,000 - after charges£47,624
Years from 30 September 2021 until Lifestyle Fund reaches its target date40 Starting pot size of £2,500 - before charges£4,167 Starting pot size of £2,500 - after charges£3,587 Starting pot size of £10,000 - before charges£16,669 Starting pot size of £10,000 - after charges£14,348 Starting pot size of £35,000 - before charges£58,342 Starting pot size of £35,000 - after charges£50,217
Years from 30 September 2020 until Lifestyle Fund reaches its target date45 Starting pot size of £2,500 - before charges£4,481 Starting pot size of £2,500 - after charges£3,782 Starting pot size of £10,000 - before charges£17,925 Starting pot size of £10,000 - after charges£15,129 Starting pot size of £35,000 - before charges£62,738 Starting pot size of £35,000 - after charges£52,950

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

UKRF Lifestyle Fund range glide path 2022 – 2031 Funds

An illustration is provided for these funds as they are part of the default investment fund. Please note:

  • If a member invested in one of these funds, they are within 10 years of their target retirement date.
  • During the 10 years leading up to their target retirement date, these funds steadily introduce gilts and cash investment allocations before they reach their target date. This is known as the glide path and the illustration below includes the effect of these changes to the underlying investments.

If the member does not access their savings when the fund reaches its target date, their savings will be moved to the UKRF Lifestyle Mature Fund and they should review the relevant illustration to see the impact this would have on their retirement savings.

Year when Lifestyle Fund reaches its target date Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in the UKRF Lifestyle 2023 Fund on 30 September 2021, their fund could grow at its target date (in 2023) to £2,508 if no charges are applied but to £2,495 with charges applied.
Year when Lifestyle Fund reaches its target date2023 Starting pot size £2,500 - before charges£2,508 Starting pot size £2,500 - after charges£2,495 Starting pot size £10,000 - before charges£10,032 Starting pot size £10,000 - after charges£9,980 Starting pot size £35,000 - before charges£35,113 Starting pot size £35,000 - after charges£34,930
Year when Lifestyle Fund reaches its target date2024 Starting pot size £2,500 - before charges£2,518 Starting pot size £2,500 - after charges£2,498 Starting pot size £10,000 - before charges£10,071 Starting pot size £10,000 - after charges£9,990 Starting pot size £35,000 - before charges£35,249 Starting pot size £35,000 - after charges£34,965
Year when Lifestyle Fund reaches its target date2025 Starting pot size £2,500 - before charges£2,531 Starting pot size £2,500 - after charges£2,503 Starting pot size £10,000 - before charges£10,125 Starting pot size £10,000 - after charges£10,013 Starting pot size £35,000 - before charges£35,437 Starting pot size £35,000 - after charges£35,046
Year when Lifestyle Fund reaches its target date2026 Starting pot size £2,500 - before charges£2,548 Starting pot size £2,500 - after charges£2,512 Starting pot size £10,000 - before charges£10,194 Starting pot size £10,000 - after charges£10,050 Starting pot size £35,000 - before charges£35,679 Starting pot size £35,000 - after charges£35,174
Year when Lifestyle Fund reaches its target date2027 Starting pot size £2,500 - before charges£2,570 Starting pot size £2,500 - after charges£2,525 Starting pot size £10,000 - before charges£10,279 Starting pot size £10,000 - after charges£10,100 Starting pot size £35,000 - before charges£35,975 Starting pot size £35,000 - after charges£35,350
Year when Lifestyle Fund reaches its target date2028 Starting pot size £2,500 - before charges£2,595 Starting pot size £2,500 - after charges£2,541 Starting pot size £10,000 - before charges£10,379 Starting pot size £10,000 - after charges£10,164 Starting pot size £35,000 - before charges£36,328 Starting pot size £35,000 - after charges£35,572
Year when Lifestyle Fund reaches its target date2029 Starting pot size £2,500 - before charges£2,624 Starting pot size £2,500 - after charges£2,560 Starting pot size £10,000 - before charges£10,497 Starting pot size £10,000 - after charges£10,241 Starting pot size £35,000 - before charges£36,738 Starting pot size £35,000 - after charges£35,844
Year when Lifestyle Fund reaches its target date2030 Starting pot size £2,500 - before charges£2,658 Starting pot size £2,500 - after charges£2,583 Starting pot size £10,000 - before charges£10,631 Starting pot size £10,000 - after charges£10,333 Starting pot size £35,000 - before charges£37,207 Starting pot size £35,000 - after charges£36,166
Year when Lifestyle Fund reaches its target date2031 Starting pot size £2,500 - before charges£2,695 Starting pot size £2,500 - after charges£2,610 Starting pot size £10,000 - before charges£10,780 Starting pot size £10,000 - after charges£10,439 Starting pot size £35,000 - before charges£37,731 Starting pot size £35,000 - after charges£36,536

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

UKRF Lifestyle Mature Fund

An illustration is provided for this fund as it is part of the default investment fund. A member’s savings will be invested here when their selected UKRF Lifestyle Fund reaches its target date which is usually around the time members expect to access their retirement savings. This illustration covers a maximum period of 15 years as this is not expected to be a long term investment option.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund value could remain at £2,500 if no charges are applied but would be £2,494 with charges applied.

As noted earlier, each of the illustrations allow for the future impact of inflation (2.5%), which for this fund is equal to the assumed rate of growth. This is why the real terms value of the retirement savings pot (before accounting for charges) remains static over time.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,500 Starting pot size £2,500 - after charges£2,494 Starting pot size £10,000 - before charges£10,000 Starting pot size £10,000 - after charges£9,976 Starting pot size £35,000 - before charges£35,000 Starting pot size £35,000 - after charges£34,917
Years of investment from 30 September 20213 Starting pot size £2,500 - before charges£2,500 Starting pot size £2,500 - after charges£2,482 Starting pot size £10,000 - before charges£10,000 Starting pot size £10,000 - after charges£9,929 Starting pot size £35,000 - before charges£35,000 Starting pot size £35,000 - after charges£34,751
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,500 Starting pot size £2,500 - after charges£2,470 Starting pot size £10,000 - before charges£10,000 Starting pot size £10,000 - after charges£9,882 Starting pot size £35,000 - before charges£35,000 Starting pot size £35,000 - after charges£34,587
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£2,500 Starting pot size £2,500 - after charges£2,441 Starting pot size £10,000 - before charges£10,000 Starting pot size £10,000 - after charges£9,765 Starting pot size £35,000 - before charges£35,000 Starting pot size £35,000 - after charges£34,178
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£2,500 Starting pot size £2,500 - after charges£2,412 Starting pot size £10,000 - before charges£10,000 Starting pot size £10,000 - after charges£9,650 Starting pot size £35,000 - before charges£35,000 Starting pot size £35,000 - after charges£33,775

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

Illustrations for the closed default fund

UKRF Lifestyle (Closed) Mature Fund

An illustration is provided for this fund as it is part of the closed default investment fund. Members’ savings will be invested here when their UKRF Lifestyle (Closed) Fund reaches its target date which is usually around the time they expect to access their retirement savings. This illustration covers a maximum period of 15 years as this is not expected to be a long term investment option.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund could be £2,476 if no charges are applied but £2,473 with charges applied.

As noted earlier, each of the illustrations allow for the future impact of inflation (2.5%), which for this fund is higher than the assumed rate of growth (1.5%). This is why the real terms value of the retirement savings pot (before accounting for charges) decreases over time.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,476 Starting pot size £2,500 - after charges£2,473 Starting pot size £10,000 - before charges£9,902 Starting pot size £10,000 - after charges£9,892 Starting pot size £35,000 - before charges£34,659 Starting pot size £35,000 - after charges£34,621
Years of investment from 30 September 20213 Starting pot size £2,500 - before charges£2,428 Starting pot size £2,500 - after charges£2,420 Starting pot size £10,000 - before charges£9,710 Starting pot size £10,000 - after charges£9,679 Starting pot size £35,000 - before charges£33,986 Starting pot size £35,000 - after charges£33,875
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,380 Starting pot size £2,500 - after charges£2,368 Starting pot size £10,000 - before charges£9,522 Starting pot size £10,000 - after charges£9,470 Starting pot size £35,000 - before charges£33,326 Starting pot size £35,000 - after charges£33,146
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£2,267 Starting pot size £2,500 - after charges£2,242 Starting pot size £10,000 - before charges£9,066 Starting pot size £10,000 - after charges£8,969 Starting pot size £35,000 - before charges£31,731 Starting pot size £35,000 - after charges£31,390
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£2,158 Starting pot size £2,500 - after charges£2,123 Starting pot size £10,000 - before charges£8,632 Starting pot size £10,000 - after charges£8,494 Starting pot size £35,000 - before charges£30,213 Starting pot size £35,000 - after charges£29,727

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

Illustrations for the self-select funds

UKRF Global (ex UK) Equity Index Fund

An illustration is provided for this fund as it is the most popular self-select fund in terms of the overall number of members who invest in it, has the equal highest assumed rate of growth and the lowest charges.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund could grow to £2,585 if no charges are applied but to £2,584 with charges applied.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,585 Starting pot size £2,500 - after charges£2,584 Starting pot size £10,000 - before charges£10,341 Starting pot size £10,000 - after charges£10,334 Starting pot size £35,000 - before charges£36,195 Starting pot size £35,000 - after charges£36,170
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,957 Starting pot size £2,500 - after charges£2,947 Starting pot size £10,000 - before charges£11,828 Starting pot size £10,000 - after charges£11,787 Starting pot size £35,000 - before charges£41,398 Starting pot size £35,000 - after charges£41,256
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£3,498 Starting pot size £2,500 - after charges£3,474 Starting pot size £10,000 - before charges£13,990 Starting pot size £10,000 - after charges£13,894 Starting pot size £35,000 - before charges£48,965 Starting pot size £35,000 - after charges£48,630
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£4,137 Starting pot size £2,500 - after charges£4,094 Starting pot size £10,000 - before charges£16,547 Starting pot size £10,000 - after charges£16,378 Starting pot size £35,000 - before charges£57,916 Starting pot size £35,000 - after charges£57,322
Years of investment from 30 September 202120 Starting pot size £2,500 - before charges£4,893 Starting pot size £2,500 - after charges£4,826 Starting pot size £10,000 - before charges£19,572 Starting pot size £10,000 - after charges£19,305 Starting pot size £35,000 - before charges£68,503 Starting pot size £35,000 - after charges£67,568
Years of investment from 30 September 202125 Starting pot size £2,500 - before charges£5,787 Starting pot size £2,500 - after charges£5,689 Starting pot size £10,000 - before charges£23,150 Starting pot size £10,000 - after charges£22,756 Starting pot size £35,000 - before charges£81,025 Starting pot size £35,000 - after charges£79,645
Years of investment from 30 September 202130 Starting pot size £2,500 - before charges£6,845 Starting pot size £2,500 - after charges£6,706 Starting pot size £10,000 - before charges£27,382 Starting pot size £10,000 - after charges£26,823 Starting pot size £35,000 - before charges£95,836 Starting pot size £35,000 - after charges£93,881
Years of investment from 30 September 202135 Starting pot size £2,500 - before charges£8,097 Starting pot size £2,500 - after charges£7,904 Starting pot size £10,000 - before charges£32,387 Starting pot size £10,000 - after charges£31,617 Starting pot size £35,000 - before charges£113,354 Starting pot size £35,000 - after charges£110,661
Years of investment from 30 September 202140 Starting pot size £2,500 - before charges£9,577 Starting pot size £2,500 - after charges£9,317 Starting pot size £10,000 - before charges£38,307 Starting pot size £10,000 - after charges£37,269 Starting pot size £35,000 - before charges£134,075 Starting pot size £35,000 - after charges£130,441
Years of investment from 30 September 202145 Starting pot size £2,500 - before charges£11,327 Starting pot size £2,500 - after charges£10,983 Starting pot size £10,000 - before charges£45,310 Starting pot size £10,000 - after charges£43,930 Starting pot size £35,000 - before charges£158,584 Starting pot size £35,000 - after charges£153,756

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

UKRF Mixed (Gilts, Cash and Growth) Fund

An illustration is provided for this fund as it is the most popular self-select fund in terms of the number of active members who invest in it.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund could be £2,476 if no charges are applied but £2,472 with charges applied.

As noted earlier, each of the illustrations allow for the future impact of inflation (2.5%), which for this fund is higher than the assumed rate of growth (1.5%). This is why the real terms value of the retirement savings pot (before accounting for charges) decreases over time.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,476 Starting pot size £2,500 - after charges£2,472 Starting pot size £10,000 - before charges£9,902 Starting pot size £10,000 - after charges£9,887 Starting pot size £35,000 - before charges£34,659 Starting pot size £35,000 - after charges£34,606
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,380 Starting pot size £2,500 - after charges£2,362 Starting pot size £10,000 - before charges£9,522 Starting pot size £10,000 - after charges£9,449 Starting pot size £35,000 - before charges£33,326 Starting pot size £35,000 - after charges£33,073
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£2,267 Starting pot size £2,500 - after charges£2,232 Starting pot size £10,000- before charges£9,066 Starting pot size £10,000 - after charges£8,929 Starting pot size £35,000 - before charges£31,731 Starting pot size £35,000 - after charges£31,252
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£2,158 Starting pot size £2,500 - after charges£2,109 Starting pot size £10,000 - before charges£8,632 Starting pot size £10,000 - after charges£8,438 Starting pot size £35,000 - before charges£30,213 Starting pot size £35,000 - after charges£29,531
Years of investment from 30 September 202120 Starting pot size £2,500 - before charges£2,055 Starting pot size £2,500 - after charges£1,993 Starting pot size £10,000 - before charges£8,219 Starting pot size £10,000 - after charges£7,973 Starting pot size £35,000 - before charges£28,768 Starting pot size £35,000 - after charges£27,905
Years of investment from 30 September 202125 Starting pot size £2,500 - before charges£1,957 Starting pot size £2,500 - after charges£1,884 Starting pot size £10,000 - before charges£7,826 Starting pot size £10,000 - after charges£7,534 Starting pot size £35,000 - before charges£27,392 Starting pot size £35,000 - after charges£26,369
Years of investment from 30 September 202130 Starting pot size £2,500 - before charges£1,863 Starting pot size £2,500 - after charges£1,780 Starting pot size £10,000 - before charges£7,452 Starting pot size £10,000 - after charges£7,119 Starting pot size £35,000 - before charges£26,082 Starting pot size £35,000 - after charges£24,917
Years of investment from 30 September 202135 Starting pot size £2,500 - before charges£1,774 Starting pot size £2,500 - after charges£1,682 Starting pot size £10,000 - before charges£7,095 Starting pot size £10,000 - after charges£6,727 Starting pot size £35,000 - before charges£24,834 Starting pot size £35,000 - after charges£23,545
Years of investment from 30 September 202140 Starting pot size £2,500 - before charges£1,689 Starting pot size £2,500 - after charges£1,589 Starting pot size £10,000 - before charges£6,756 Starting pot size £10,000 - after charges£6,357 Starting pot size £35,000 - before charges£23,646 Starting pot size £35,000 - after charges£22,249
Years of investment from 30 September 202145 Starting pot size £2,500 - before charges£1,608 Starting pot size £2,500 - after charges£1,502 Starting pot size £10,000 - before charges£6,433 Starting pot size £10,000 - after charges£6,007 Starting pot size £35,000 - before charges£22,515 Starting pot size £35,000 - after charges£21,024

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

UKRF Diversified Growth Fund

An illustration is provided for this fund as this is one of the underlying investment funds within the UKRF Lifestyle Funds and is therefore incorporated within the earlier illustrations.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund could grow to £2,537 if no charges are applied but to £2,527 with charges applied.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,537 Starting pot size £2,500 - after charges£2,527 Starting pot size £10,000 - before charges£10,146 Starting pot size £10,000- after charges£10,109 Starting pot size £35,000 - before charges£35,512 Starting pot size £35,000 - after charges£35,382
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,688 Starting pot size £2,500 - after charges£2,639 Starting pot size £10,000 - before charges£10,753 Starting pot size £10,000 - after charges£10,557 Starting pot size £35,000 - before charges£37,637 Starting pot size £35,000 - after charges£36,950
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£2,891 Starting pot size £2,500 - after charges£2,786 Starting pot size £10,000 - before charges£11,564 Starting pot size £10,000 - after charges£11,145 Starting pot size £35,000 - before charges£40,473 Starting pot size £35,000 - after charges£39,008
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£3,109 Starting pot size £2,500 - after charges£2,941 Starting pot size £10,000 - before charges£12,435 Starting pot size £10,000 - after charges£11,766 Starting pot size £35,000 - before charges£43,522 Starting pot size £35,000 - after charges£41,181
Years of investment from 30 September 202120 Starting pot size £2,500 - before charges£3,343 Starting pot size £2,500 - after charges£3,105 Starting pot size £10,000 - before charges£13,372 Starting pot size £10,000 - after charges£12,421 Starting pot size £35,000 - before charges£46,801 Starting pot size £35,000 - after charges£43,475
Years of investment from 30 September 202125 Starting pot size £2,500 - before charges£3,595 Starting pot size £2,500 - after charges£3,278 Starting pot size £10,000 - before charges£14,379 Starting pot size £10,000 - after charges£13,113 Starting pot size £35,000 - before charges£50,327 Starting pot size £35,000 - after charges£45,896
Years of investment from 30 September 202130 Starting pot size £2,500 - before charges£3,866 Starting pot size £2,500 - after charges£3,461 Starting pot size £10,000 - before charges£15,463 Starting pot size £10,000 - after charges£13,844 Starting pot size £35,000 - before charges£54,119 Starting pot size £35,000 - after charges£48,453
Years of investment from 30 September 202135 Starting pot size £2,500 - before charges£4,157 Starting pot size £2,500 - after charges£3,654 Starting pot size £10,000 - before charges£16,628 Starting pot size £10,000 - after charges£14,615 Starting pot size £35,000 - before charges£58,197 Starting pot size £35,000 - after charges£51,152
Years of investment from 30 September 202140 Starting pot size £2,500 - before charges£4,470 Starting pot size £2,500 - after charges£3,857 Starting pot size £10,000 - before charges£17,880 Starting pot size £10,000 - after charges£15,429 Starting pot size £35,000 - before charges£62,582 Starting pot size £35,000 - after charges£54,001
Years of investment from 30 September 202145 Starting pot size £2,500 - before charges£4,807 Starting pot size £2,500 - after charges£4,072 Starting pot size £10,000 - before charges£19,228 Starting pot size £10,000 - after charges£16,288 Starting pot size £35,000 - before charges£67,297 Starting pot size £35,000 - after charges£57,009

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

UKRF Sustainable Equity Fund

An illustration is provided for this fund as it has the highest level of charges and equal highest assumed rate of growth.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund could grow to £2,585 if no charges are applied but to £2,566 with charges applied.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,585 Starting pot size £2,500 - after charges£2,566 Starting pot size £10,000 - before charges£10,341 Starting pot size £10,000 - after charges£10,263 Starting pot size £35,000 - before charges£36,195 Starting pot size £35,000 - after charges£35,920
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,957 Starting pot size £2,500 - after charges£2,846 Starting pot size £10,000 - before charges£11,828 Starting pot size £10,000 - after charges£11,386 Starting pot size £35,000 - before charges£41,398 Starting pot size £35,000 - after charges£39,850
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£3,498 Starting pot size £2,500 - after charges£3,241 Starting pot size £10,000 - before charges£13,990 Starting pot size £10,000 - after charges£12,963 Starting pot size £35,000 - before charges£48,965 Starting pot size £35,000 - after charges£45,372
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£4,137 Starting pot size £2,500 - after charges£3,690 Starting pot size £10,000 - before charges£16,547 Starting pot size £10,000 - after charges£14,760 Starting pot size £35,000 - before charges£57,916 Starting pot size £35,000 - after charges£51,659
Years of investment from 30 September 202120 Starting pot size £2,500 - before charges£4,893 Starting pot size £2,500 - after charges£4,201 Starting pot size £10,000 - before charges£19,572 Starting pot size £10,000 - after charges£16,805 Starting pot size £35,000 - before charges£68,503 Starting pot size £35,000 - after charges£58,818
Years of investment from 30 September 202125 Starting pot size £2,500 - before charges£5,787 Starting pot size £2,500 - after charges£4,783 Starting pot size £10,000 - before charges£23,150 Starting pot size £10,000 - after charges£19,134 Starting pot size £35,000 - before charges£81,025 Starting pot size £35,000 - after charges£66,968
Years of investment from 30 September 202130 Starting pot size £2,500 - before charges£6,845 Starting pot size £2,500 - after charges£5,446 Starting pot size £10,000 - before charges£27,382 Starting pot size £10,000 - after charges£21,785 Starting pot size £35,000 - before charges£95,836 Starting pot size £35,000 - after charges£76,248
Years of investment from 30 September 202135 Starting pot size £2,500 - before charges£8,097 Starting pot size £2,500 - after charges£6,201 Starting pot size £10,000 - before charges£32,387 Starting pot size £10,000 - after charges£24,804 Starting pot size £35,000 - before charges£113,354 Starting pot size £35,000 - after charges£86,814
Years of investment from 30 September 202140 Starting pot size £2,500 - before charges£9,577 Starting pot size £2,500 - after charges£7,060 Starting pot size £10,000 - before charges£38,307 Starting pot size £10,000 - after charges£28,241 Starting pot size £35,000 - before charges£134,075 Starting pot size £35,000 - after charges£98,844
Years of investment from 30 September 202145 Starting pot size £2,500 - before charges£11,327 Starting pot size £2,500 - after charges£8,039 Starting pot size £10,000 - before charges£45,310 Starting pot size £10,000 - after charges£32,155 Starting pot size £35,000 - before charges£158,584 Starting pot size £35,000 - after charges£112,541

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

UKRF Over 15 Years UK Gilt Index Fund

An illustration is provided for this fund as it has the lowest assumed rate of growth, which is typical of gilt funds. This is available as a self-select fund and is one of the underlying investment funds within the UKRF Lifestyle Funds.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund could be £2,463 if no charges are applied but £2,461 with charges applied.

As noted earlier, each of the illustrations allow for the future impact of inflation (2.5%), which for this fund is higher than the assumed rate of growth (1.0%). This is why the real terms value of the retirement savings pot (before accounting for charges) decreases over time.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,463 Starting pot size £2,500 - after charges£2,461 Starting pot size £10,000 - before charges£9,854 Starting pot size £10,000 - after charges£9,846 Starting pot size £35,000 - before charges£34,488 Starting pot size £35,000 - after charges£34,460
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,322 Starting pot size £2,500 - after charges£2,313 Starting pot size £10,000 - before charges£9,289 Starting pot size £10,000 - after charges£9,251 Starting pot size £35,000 - before charges£32,513 Starting pot size £35,000 - after charges£32,380
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£2,157 Starting pot size £2,500 - after charges£2,140 Starting pot size £10,000 - before charges£8,629 Starting pot size £10,000 - after charges£8,559 Starting pot size £35,000 - before charges£30,203 Starting pot size £35,000 - after charges£29,956
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£2,004 Starting pot size £2,500 - after charges£1,980 Starting pot size £10,000 - before charges£8,016 Starting pot size £10,000 - after charges£7,918 Starting pot size £35,000 - before charges£28,056 Starting pot size £35,000 - after charges£27,714
Years of investment from 30 September 202120 Starting pot size £2,500 - before charges£1,862 Starting pot size £2,500 - after charges£1,831 Starting pot size £10,000 - before charges£7,446 Starting pot size £10,000 - after charges£7,326 Starting pot size £35,000 - before charges£26,063 Starting pot size £35,000 - after charges£25,640
Years of investment from 30 September 202125 Starting pot size £2,500 - before charges£1,729 Starting pot size £2,500 - after charges£1,694 Starting pot size £10,000 - before charges£6,917 Starting pot size £10,000 - after charges£6,777 Starting pot size £35,000 - before charges£24,211 Starting pot size £35,000 - after charges£23,720
Years of investment from 30 September 202130 Starting pot size £2,500 - before charges£1,606 Starting pot size £2,500 - after charges£1,567 Starting pot size £10,000 - before charges£6,426 Starting pot size £10,000 - after charges£6,270 Starting pot size £35,000 - before charges£22,490 Starting pot size £35,000 - after charges£21,945
Years of investment from 30 September 202135 Starting pot size £2,500 - before charges£1,492 Starting pot size £2,500 - after charges£1,450 Starting pot size £10,000 - before charges£5,969 Starting pot size £10,000 - after charges£5,801 Starting pot size £35,000 - before charges£20,892 Starting pot size £35,000 - after charges£20,302
Years of investment from 30 September 202140 Starting pot size £2,500 - before charges£1,386 Starting pot size £2,500 - after charges£1,342 Starting pot size £10,000 - before charges£5,545 Starting pot size £10,000 - after charges£5,366 Starting pot size £35,000 - before charges£19,407 Starting pot size £35,000 - after charges£18,783
Years of investment from 30 September 202145 Starting pot size £2,500 - before charges£1,288 Starting pot size £2,500 - after charges£1,241 Starting pot size £10,000 - before charges£5,151 Starting pot size £10,000 - after charges£4,965 Starting pot size £35,000 - before charges£18,028 Starting pot size £35,000 - after charges£17,377

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

UKRF Cash Fund

An illustration is provided for this fund as it is one of the underlying investment funds within the UKRF Lifestyle Funds.

Years of investment from 30 September 2021 Starting pot size £2,500 Starting pot size £10,000 Starting pot size £35,000
Before charges After charges Before charges After charges Before charges After charges
Note on how to read this table: If a member has invested £2,500 in this fund on 30 September 2021 for one year, their fund could be £2,476 if no charges are applied but £2,474 with charges applied.

As noted earlier, each of the illustrations allow for the future impact of inflation (2.5%), which for this fund is higher than the assumed rate of growth (1.5%). This is why the real terms value of the retirement savings pot (before accounting for charges) decreases over time.
Years of investment from 30 September 20211 Starting pot size £2,500 - before charges£2,476 Starting pot size £2,500 - after charges£2,474 Starting pot size £10,000 - before charges£9,902 Starting pot size £10,000 - after charges£9,895 Starting pot size £35,000 - before charges£34,659 Starting pot size £35,000 - after charges£34,632
Years of investment from 30 September 20215 Starting pot size £2,500 - before charges£2,380 Starting pot size £2,500 - after charges£2,371 Starting pot size £10,000 - before charges£9,522 Starting pot size £10,000 - after charges£9,486 Starting pot size £35,000 - before charges£33,326 Starting pot size £35,000 - after charges£33,201
Years of investment from 30 September 202110 Starting pot size £2,500 - before charges£2,267 Starting pot size £2,500 - after charges£2,250 Starting pot size £10,000 - before charges£9,066 Starting pot size £10,000 - after charges£8,998 Starting pot size £35,000 - before charges£31,731 Starting pot size £35,000 - after charges£31,494
Years of investment from 30 September 202115 Starting pot size £2,500 - before charges£2,158 Starting pot size £2,500 - after charges£2,134 Starting pot size £10,000 - before charges£8,632 Starting pot size £10,000 - after charges£8,536 Starting pot size £35,000 - before charges£30,213 Starting pot size £35,000 - after charges£29,875
Years of investment from 30 September 202120 Starting pot size £2,500 - before charges£2,055 Starting pot size £2,500 - after charges£2,024 Starting pot size £10,000 - before charges£8,219 Starting pot size £10,000 - after charges£8,097 Starting pot size £35,000 - before charges£28,768 Starting pot size £35,000 - after charges£28,339
Years of investment from 30 September 202125 Starting pot size £2,500 - before charges£1,957 Starting pot size £2,500 - after charges£1,920 Starting pot size £10,000 - before charges£7,826 Starting pot size £10,000 - after charges£7,681 Starting pot size £35,000 - before charges£27,392 Starting pot size £35,000 - after charges£26,882
Years of investment from 30 September 202130 Starting pot size £2,500 - before charges£1,863 Starting pot size £2,500 - after charges£1,821 Starting pot size £10,000 - before charges£7,452 Starting pot size £10,000 - after charges£7,286 Starting pot size £35,000 - before charges£26,082 Starting pot size £35,000 - after charges£25,500
Years of investment from 30 September 202135 Starting pot size £2,500 - before charges£1,774 Starting pot size £2,500 - after charges£1,728 Starting pot size £10,000 - before charges£7,095 Starting pot size £10,000 - after charges£6,911 Starting pot size £35,000 - before charges£24,834 Starting pot size £35,000 - after charges£24,189
Years of investment from 30 September 202140 Starting pot size £2,500 - before charges£1,689 Starting pot size £2,500 - after charges£1,639 Starting pot size £10,000 - before charges£6,756 Starting pot size £10,000 - after charges£6,556 Starting pot size £35,000 - before charges£23,646 Starting pot size £35,000 - after charges£22,945
Years of investment from 30 September 202145 Starting pot size £2,500 - before charges£1,608 Starting pot size £2,500 - after charges£1,555 Starting pot size £10,000 - before charges£6,433 Starting pot size £10,000 - after charges£6,219 Starting pot size £35,000 - before charges£22,515 Starting pot size £35,000 - after charges£21,766

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

Additional information on the pot sizes used in the illustrations

For many members, the DC section of the UKRF is a top-up to benefits they have built up in either the final salary section or in the cash balance section (called ‘Afterwork’). The pot sizes used in the above illustrations reflect the comparatively small size of DC benefits in comparison to the final salary and cash balance benefits. The pots have been calculated with reference to each element of DC benefits within the UKRF, including DB AVCs and pure DC benefits, such as the Retirement Investment Scheme (RIS). The RIS has a large number of members with small DC pots (this is a historic section with no active members where members tended to save small amounts for a short period of time).

The pot sizes used for the illustrations are detailed in the guidance to the illustrations above. By way of comparison, active members of Afterwork have an average DC pot size of £29,000, but an average cash balance fund value of £85,800 which demonstrates how the DC section tends to be a top-up to other benefits in the UKRF. The illustrations shown do not include the cash balance section.

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How to read the illustration tables

It is important to note that the illustration tables are designed to show the potential impact of costs and charges on investment returns. All of the illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. In reality the value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members' retirement savings is not reflected in these illustrations.

The illustrations also assume the investment charges and transaction costs remain the same and are deducted each year. In reality the costs and charges will fluctuate each year.

The illustrations are not designed to provide UKRF members with a personalised projection of what their benefits may be worth at retirement. DC members of the UKRF should review their latest benefit statement which is available on the .

The diagrams below show you how to read the tables.

UKRF Lifestyle Fund range glide path 2022 – 2031 Funds

An image showing how to read the Fund Illustration tables

In this example, if a member has invested £2,500 in this fund for one year on 30 September 2021, their fund could grow to £2,508 if no charges are applied but to £2,495 with charges applied.

Self-select funds and Lifestyle Mature Funds

An image showing how to read the Fund Illustration tables

In this example, if a member has invested £2,500 in this fund for one year on 30 September 2021, their fund could grow to £2,585 if no charges are applied but to £2,584 with charges applied.

It is important to note that these illustrations are designed to show the potential impact of costs and charges on investment returns. The illustrations are not designed to provide members with a personalised projection of what their benefits may be worth at retirement. All illustrations assume a growth rate for each type of investment fund that is applied at the same rate for each year of the illustration. The value of investments and the returns they generate are not guaranteed and can go down as well as up and this risk to members’ retirement savings is not reflected in these illustrations.

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More information on the DC investment funds available for UKRF members

Where are the UKRF’s DC funds invested?

The UKRF’s DC investment funds invest in underlying pooled or collective investment funds provided by investment managers. If members would like further information on the underlying investment funds that the UKRF DC funds invest in, they are able to request it from the . They will be able to provide members with the International Securities Identification Numbers (these are unique to each individual fund) of the funds that members are invested in.

Where can members find more information on the performance of the DC investment funds?

For the latest performance figures for each fund members should go to the Investment Performance section under Investment Information on the . Past performance is not a guide to future performance and members should refer to the relevant factsheets for more information on the objectives of the funds.

Where can I find more information on the Trustee’s investment responsibilities?

The Trustee has prepared a Statement of Investment Principles which includes the Trustee's investment responsibilities, its investment strategy and approach to risk management, and how the default funds are designed and governed.

For further information, members should read Your DC Investment Guide.

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