IGC Annual Report Summary 2025 Ceros Embed Desktop
Investment pathways
Good
Environmental, social and governance (ESG) investing
Excellent
Accessing your pension
Good
Member engagement and communication
Good
Member service and administration
Excellent
Investment choice and performance
Good
Default funds and their investment performance
Acceptable, with areas
for improvement
Cost and charges
Excellent
Investment pathways
Our value rating: Good
Are the right investment choices available once you’ve started to take a flexible income?
The investment options are fit for purpose and provide value for money. L&G continues to monitor how those of you in drawdown (accessing your pension) use your pot to check that it matches the aims of the investment pathways that you are invested in.
In 2025 we look forward to L&G launching online access for more of you to move into drawdown, as well as a full review of the funds that each pathway invests in.
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Environmental, social and governance (ESG) investing
Our value rating: Excellent
Is your pension invested responsibly? ESG issues are directly linked to your pension through the assets your pension pot is invested in, such as equities which are shares in companies.
L&G continues to be a leader in the industry in this area. Independent experts consistently rate its approach as either the strongest or above average compared to other pension providers. It has engaged with thousands of companies and strengthened its Climate Impact Pledge, which holds major businesses to account on climate action. If you’re invested in one of the main default funds you’ll have access to Tumelo, an online platform showing the companies your pension is invested in and you can give your opinion on ESG issues. We’ve reviewed L&G’s ESG policies and believe they are of good quality.
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Accessing your pension
Our value rating: Good
What choices are available when you come to take your money? Are there tools and support in place to help you make informed decisions?
You can access the full range of retirement options, and you have flexibility in how and when you choose to take your money. There are good tools and information to help you, including the new Guided Retirement Planner and tax calculator.
Communications have been improved, and new security steps have been added to the online portal to help protect against fraud. L&G received a good score when we compared the options you have with other providers. Read more >
Member engagement and communication
Our value rating: Good
Do you receive clear, high-quality communications? Are there tools available to help with your retirement planning?
Communications are appealing and are right for your needs, and accessibility has remained a key focus. There is a wide range of material to help you make decisions. A new app was launched to make it easier to manage your pension, and the online portal has been improved. External benchmarking described the available communications as ‘good’ and ‘strong’. Read more >
Member service and administration
Our value rating: Excellent
Is your pension well run, and do you receive good service?
L&G’s service was excellent throughout the year. Over 98% of targets for administration and the helpline were met, and call wait times were significantly reduced. Your satisfaction and recommendation scores reached record highs, and improvements were made to better support vulnerable individuals. Our rating was confirmed when we compared L&G against its competitors. Read more >
Investment choice and performance
Our value rating: Good
Is there a good range of funds if you want to make your own choice? How well do these funds perform?
While we don’t actively encourage you to switch out of the default fund – which is designed to suit most members – we recognise that you may want to take a more active role in managing your pension pot.
We believe L&G offers a well-designed and appropriate range of alternative investment options, and this view is supported by independent research. Most funds are well managed, have delivered good performance, and carry a good or strong responsible investing rating. L&G has also introduced new options that make it easier for members to invest in a way that is consistent with their faith and values.
A full review of the fund range is planned for 2025. Read more >
Default funds and their
investment performance
Our value rating: Acceptable, with areas for improvement
Are the default funds appropriate for you to invest in, and how well do they perform? If you haven’t chosen your own funds, you’ll be in a default fund.
In 2024 L&G began to move pension pots from the Multi-Asset Fund (or Future World Multi-Asset Fund) to the Lifetime Advantage Funds (LAFs) by default, or to the Target Date Funds (TDFs) if selected by a scheme employer. We believe that the LAFs and TDFs have potential to produce better growth for your pension pot over the long term. Most of you were still invested in the Multi-Asset Fund, which is now being phased out, during this reporting period. The IGC’s view has been we that both the structure and performance have been acceptable but could be improved. Because of this we have kept our rating of ‘Acceptable, with areas for improvement’. The move to LAF or TDF is a positive step. Read more >
Costs and charges
Our value rating: Excellent
Are the costs and charges for your pension competitive and do they offer good value for money?
The costs and charges you pay are competitive and this is backed up by independent research that compares them to other providers.
The government sets a limit on the charges that can apply to most workplace pension schemes. The IGC checks and can confirm that all charges are the same as or below these limits where they apply. Read more >
Summary of our assessments for 2024
Select each assessment to find out more