Automatic Enrolment Retirement Savings System Act 2024 section 70

Assignment of contributions to appropriate risk level

Section 70 sets out how participants' contributions are assigned to the appropriate investment risk level, either by active choice or by a default strategy based on proximity to pensionable age.

• Participants may actively select their preferred investment risk level through a procedure determined by the Authority, who also decide when such selections can be made.
• Where no active choice is made, a default strategy applies: participants more than 15 years from pensionable age are assigned to the higher risk level, those between 15 and 5 years out to the medium risk level, and those within 5 years to the lower risk level.
• The Minister may make regulations to vary the default risk level assignments for different periods before pensionable age, including applying different risk levels to different portions of a participant's contributions.
• Where regulations split contributions across risk levels, each portion is treated separately under the investment framework as if it were the participant's total contributions.