Staying on track
You can choose how you want to invest your savings and there is an option if you do not want to manage your own investments
Managing your own investments takes time and some knowledge, so we understand that it is not for everyone. If choosing your own investments takes you out of your comfort zone, you will be pleased to know that there are options with you in mind. These are called the Mercer Smartpaths, which are often more generally referred to as 'Lifestyle investments'.
There are three Mercer Smartpaths available for you to choose from:
You can find more details on the Mercer Smartpaths in Mercer's investment guide.
Lifestyle investments aim to grow your account until you are 15 years from retirement and then gradually moves your account into investments designed to protect its value as you get closer to retirement. If you do not want to make an investment choice, you will automatically be invested in a Lifestyle option, with a Target Retirement Age of 65.
Your Target Retirement Age affects when your account switches into lower-risk investments as you approach retirement. You can change your Target Retirement Age online by logging into Your MMT.
If you would prefer the freedom to choose from a range of investment types, and when to switch between them, you can also choose from the core range of funds. These do not have any automation built in – the mix of investments does not change as you approach your selected retirement age. Therefore, it is important if you select from the core fund range, you keep your choices under review.
You can find a full list of the funds available for you to choose from in Mercer's investment guide.
If you think you would like to choose from the core range of funds, you might want to read more about the different investment styles and asset classes below before making your choice.
You should keep an eye on your investments and make sure that they are still suitable for you, particularly if your retirement plans change over time.
For example, as you get nearer to retirement, you may prefer not to invest as much in higher-risk funds. Instead, you may wish to invest more in funds that protect the value of your account and are more suitable for the way that you plan to take your MMT account at your Target Retirement Age.
You can track and change your investment choices online by logging into Your MMT.
Investment funds can be passively or actively managed. Here is the difference:
An ‘asset class’ is a category of assets or investments, such as equities or bonds. Normally, assets in the same class have similar characteristics, but they can have very different returns or risks. The value of the investments in all asset classes can go up as well as down. The following asset classes make up the investment options for the MMT.
The Self-Select Funds are grouped by asset class above. Click on the questions (for example "What are Bonds?") for more information.