If you are not sure what to do and how to invest your savings, that’s ok! We have you covered with this option.  Whether you purposely choose the Life Stage strategy - flexible income target or invest in it automatically, it is a well thought out strategy to suit the needs of the average member.

About the Life Stage Strategy: flexible income target

To maximise the opportunities for growth, this invests wholly in global stock markets, until you are within 21 years of your target retirement age. It then moves your savings gradually to a mix of 70% in global stock markets and 30% in gilts and bonds. This is to steady your investments by spreading them between different asset classes.


Most people choose to take a quarter of their savings as a tax free cash sum when they retire and keep the rest of their savings invested. The strategy reflects this, by gradually moving a quarter of your savings into investments similar to cash.


This is why it is called the 'Life Stage strategy - flexible income target'. If you want a bit more involvement and other strategy options for different income aims, please go to the 'Let me choose' page. 

The 'Life Stage Strategy - flexible income target' is comprised of a simple fund range:

  • NPT Growth Fund
  • NPT Consolidate Fund
  • NPT Retirement Fund

You can see where each fund has involvement in the strategy, and in some cases there is overlap:

You can explore where the investments are invested, including by sector and country by looking at the Fund Fact Sheets here. Once you have clicked on the ‘Fact Sheets’ tab, you will see a list of funds including the three relevant to the Life Stage Strategy - flexible income target.

Even though you are less involved in this strategy, you are always involved in planning for your future! So check into your account online and ensure your choices still suit your circumstances. Making changes on your account is free and easy to do.

You can update your investments and your income alignment strategy anytime online. Simply log in, above, go to ‘Investments’ and click ‘amend investment strategy’.

Remember! There is always some risk and strategies do not guarantee a better return. Click here for more information about risk.

How we choose where to invest

Climate change is here and its adverse impacts in the form of more extreme weather events, rising sea levels and ecosystem damage are only likely to increase.

Governments can no longer ignore climate change. Around the world, they have implemented ‘net zero emissions’ mandates and new climate regulations. And many are adopting voluntary initiatives, such as the Transition Pathway Initiative (TPI) and the Taskforce on Climate-related Financial Disclosures (TCFD).

As we move from an energy system based on fossil fuels to one focussed on renewable energy sources, many companies, pension schemes and governments are changing where their money is invested.

Because of this, the way that we approach investing needs to be more sophisticated.


There is now a growing demand for index-based solutions that align to the Paris Agreement goals.

In addition, an index aligned with the climate transition needs to capture company commitments to the TCFD, along with emissions pathways – in particular for the most carbon intensive companies globally – that are aligned with international (e.g. 2°C warming) targets.

Our investment managers have partnered with FTSE Russell and the Transition Pathways Initiative (TPI) to develop an innovative new climate equity strategy.

The Strategy combines data and analysis from FTSE Russell and the TPI of how the world’s largest and most carbon exposed/intensive public companies are managing the climate transition.


What is the Transition Pathway Initiative?

The Transition Pathway Initiative (TPI) is a global initiative led by asset owners and supported by asset managers, established by the Church of England, National Investing Bodies and the Environment Agency Pension Fund.

Aimed at investors and free to use, it assesses companies’ preparedness for the transition to a low-carbon economy, supporting efforts to address climate change

FTSE Russell is a data partner to the TPI initiative, providing data from various ratings models.

The TPI Initiative uses 16 of the ESG indicators to assess/score the quality of companies’ management of their greenhouse gas emissions and of risks and opportunities related to the low-carbon transition. TPI also evaluates how companies’ carbon emissions compare with the international targets and national pledges made as part of the UN Paris Agreement.

It does this by comparing companies in high-emitting sectors against each other and against sector-specific benchmarks, which establish the performance of an average company that is aligned with international emissions targets.

The Strategy consist of constituents of the FTSE Developed Index excluding companies involved in Coal, Nuclear Weapons, Tobacco, and Controversies.

It excludes companies based on the following criteria:

  • Controversial weapons — Companies that manufacture or provide specific parts for anti-personnel mines, cluster munitions, chemical and biological weapons.
  • Controversies — Companies that have been flagged for controversies based on the UN Global Compact Principles.
  • Tobacco — Companies that produce or provide inputs into tobacco products. This includes:
  1. all companies that are classified in the Industry Classification Benchmark (ICB) Subsectors Tobacco (3785) (New ICB 45103010) and
  2. companies that are not classified in ICB Subsector Tobacco (3785) (New ICB Subsector Tobacco 45103010), but that are identified as having activity in this Subsector. Companies providing inputs into tobacco products/ manufacturing, but not including retail. This includes rolling papers, tobacco flavouring, and tobacco-specific packaging.
  • Coal — Companies that own proved or probable reserves in coal.
  • Nuclear Weapons — Companies that produce nuclear weapons systems, or that produce specific and critical parts or services for nuclear weapons systems.

The controversial weapon and fossil fuel exclusion lists will be reviewed twice a year. All the other exclusion lists including those for tobacco, controversies, coal and nuclear weapons will be reviewed four times a year.





Constituent weights are based on five key climate considerations:

  1. company exposure to green revenues,
  2. fossil fuel reserves and
  3. carbon emissions; as well as
  4. companies’ climate governance activities (aligned with the Taskforce on Climate-related Financial Disclosures’ recommendations) and
  5. forward-looking commitments to carbon emission pathways (aligned to the Paris Agreement and 2DC/below 2DC warming scenarios).

XPS’ ESG research framework involves assessing managers on the following criteria.


Philosophy: Firm level philosophy relating to ESG and broader sustainability issues

  • Manager’s views and commitment to integrating ESG
  • Accreditation from various industry initiatives such as UN PRI, Stewardship Code
  • Level of dedicated resource and commitment to raising market standards via collaboration in the industry.

Integration: Implementation of the firm’s ESG philosophy at individual fund level

  • Approach to ESG integration and how it is tailored to the asset class in question
  • Methodology used and consistency in its application including tools and data used
  • Examples to evidence integration within the mandate

Climate Change: Incorporating climate change considerations at fund level

  • Climate change considerations within the decision making, engagement and voting process
  • Commitment to driving the climate change agenda

Stewardship: Approach to voting and engagement

  • Approach to voting and stewardship
  • Examples to evidence engagement process that are outcome oriented
  • Reporting and transparent communication of activity to stakeholders


 Remember! There is always some risk and strategies do not guarantee a better return.  Click here for more information about risk

Important! We automatically alter your investments to reflect how far you are from retirement - your target retirement age. Therefore, it’s important to ensure this reflects your current plans and change it, if not. To change your target retirement age, simply log in and go to the Personal Details section.