Why I Am Not a Fan of Life Styling on Pensions
What is Life Styling – I hear you ask?
Life Styling is a built-in mechanism designed to reduce risk as you get closer to retirement by gradually moving your money into lower-risk investments, like bonds and cash. The theory is simple: protect your savings from market swings as you near the finish line.
But here’s the problem: life doesn’t always follow the neat script that life styling assumes. And for many people, it can actually work against their long-term goals.
A pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
What Life Styling Is Doing Actually Doing
Most workplace pensions, which are regulated by The Pensions Regulator, will automatically put members on a life styling track. About 10–15 years before your “selected retirement age,” the pension begins to de-risk by shifting money away from equities into “safer” assets.
This might sound sensible—but it’s based on an assumption that everyone buys an annuity at retirement, needing stability in cash and bonds. Today, that’s not the reality for most. Flexible drawdown, phased retirement, and even working beyond 65 are increasingly common.
Why I’m Not a Fan
- It Makes Assumptions About Your Plans
Life styling doesn’t ask what you want. If you’re planning to keep your pension invested and take an income over decades, de-risking too early could mean your pot grows far less than it could.
- It Could Leave You Short on Growth
By moving into lower-risk funds too soon, you may lose out on years of compound growth. Over 10–15 years, that can mean tens of thousands of pounds less for your retirement lifestyle.
- It Encourages a “Set and Forget” Mentality
Because Life styling is automatic, many people assume life styling is a safe, ready-made solution. In reality, it still should be reviewed because if your goals or timelines change, your pension strategy should change too.
What You Can Do?
- Check if you’re in a life styled fund
Log in to your pension account and see if de-risking has already started. - Think about your real retirement plans
Do you plan to buy an annuity at 65, or are you more likely to use flexible drawdown? Your investment mix should match your actual goals. - Review your pension regularly
Don’t let the default setting make decisions for you. Life changes—your pension should keep up. - Get personalised advice
An independent financial adviser can help design a strategy that reflects your needs, not assumptions baked into a template.
The Bottom Line
Life styling was designed in an era when retirement looked very different. Today, with more flexible options, longer working lives, and greater choice, it’s not always the best fit. By taking a more active, personalised approach, you can make sure your pension works for the retirement you actually want—not the one a default fund assumes.
Let’s Talk
If you’d like to review how your pension is invested—and whether life styling is helping or holding you back—we’d be happy to help. At Corcillium Wealth Management, we make pensions clear, personal, and aligned with your future.
Call us today on 01483 654135 or book directly into the diary by clicking here
Corcillium Wealth Management is a trading name of 2plan wealth management Ltd which is authorised and regulated by the Financial Conduct Authority. It is entered on the FCA register (www.fca.org.uk ) under reference 461598. Registered office: 2plan wealth management Ltd, 3rd Floor, Bridgewater Place, Water Lane, Leeds, LS11 5BZ. Registered in England and Wales Number: 05998270