New Ireland’s IRIS retirement funds follow New Ireland’s Lifestyle investment strategy. Two versions are available:
A Lifestyle investment strategy is an investment strategy that is specifically designed for pension investors. This strategy recognises that your investment needs will be different depending on your term to retirement. It is designed to match your changing investment needs by automatically selecting an appropriate level of risk depending on your retirement year – a higher level of risk when you are far from retirement and want your fund to grow, and a lower level of risk as you near retirement and want to safeguard your fund against strong short term market fluctuations.
IRIS and Passive IRIS use a unique target date fund approach which means that you can stay in the one fund throughout your retirement journey.
IRIS funds follow four key principles
1. You can stay in the same fund
Many investment strategies work by moving you from fund to fund over time, possibly as often as every month. IRIS funds are different – you invest in just one fund based on your expected year of retirement. Any switching or movement in and out of different types of assets happens within this fund.
2. When you are far from retirement you can afford to take some investment risk
When you are investing for a very long time (15 years or more), you can focus on investing in riskier assets with greater growth potential. If the value of your investment falls due to short term market fluctuations, you should have plenty of time for it to recover. When you are far from retirement IRIS automatically invests more of your money in assets which offer greater growth potential to try to generate growth over the longer term.
3. When you are close to retirement you need to preserve the purchasing power of your savings
As you approach your expected retirement date, you may not be able to afford to take much risk with the value of your investment. If your fund falls in value, it may not have enough time to recover. Close to retirement, IRIS automatically invests in assets with a lower level of risk.
4. You can easily move to another IRIS option if your plans for your retirement change
IRIS is ideal for pension investors who want to take the Approved Retirement Fund (ARF) and retirement lump sum option at retirement. If you decide that you want to purchase an annuity or take your fund as a cash lump sum, you can easily move to our IRIS/Passive IRIS Annuity Option or IRIS/Passive IRIS Lump Sum Option.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in these funds you may lose some or all of the money you invest.
Warning: This fund may be affected by changes in currency exchange rates.