IGC_Annual_Report_2024.pdf Legal and General

L&G IGC report

1. L&G Independent
Governance Committee
Annual report for the year ending 31 December 2024
Contents
Chair’s introduction 2
2024 priorities 5
Meet the IGC members 7
Costs and charges 10
Default funds and their investment performance 12
Investment choice and performance 20
Member service and administration 22
Member engagement and communication 26
Accessing your pension 29
Environmental, social and governance (ESG) investing 32
Investment pathways 36

2. Chair’s introduction
Welcome to this year’s report from the
Independent Governance Committee (IGC).
I’m Joanne Segars, Chair of the IGC. As a committee we’re responsible for checking whether you receive value for money. You can find out more about the outcome of our assessment as well as read more about us and what we do in this introduction.
Value for money
We look at whether you are getting a good deal by assessing and rating eight different parts of your pension. Where we can, we commission and use independent research to compare L&G to its competitors.
Our assessment covers the period from 1 January 2024 to
31 December 2024.
This report covers two Defined Contribution (DC) Workplace
pension products:
• Legal & General WorkSave Pension Plan
• Legal & General Group Stakeholder Pension Plan
We also cover investment pathways which are available for
you to invest in once you’ve started to use your pension pot to
take a flexible income. Investment pathways are available to
both Workplace and Personal Pension scheme members and
our assessment covers both.
We refer to these as ‘your scheme’ and ‘your pension’
throughout this report. We also use the terms ‘you’ and ‘your’
to mean you as a member of these plans.
We have used four ratings to assess the level of value you
receive, ranging from poor to excellent:
• Excellent – of a particularly high standard, often backed
through independent research.
• Good – of a high standard, with areas identified that could
lead to an excellent position.
• Acceptable, with areas for improvement– provides value
but important areas for improvement identified.
• Poor – below the standard we expect, with significant
room for improvement.
An excellent rating does not mean ‘perfect’. There will always
be room for improvement. We encourage this even where we
have provided a rating of good or excellent.
2

3. 3 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024


Our view is that overall members are receiving good value for money:
Value for money
category
What we consider 2023 report ratings
Our assessment of
the value you received
in 2024
Costs and charges Are the costs and charges for
your pension competitive and
do they offer you good value
for money?
Excellent Excellent
Default funds and their Are the default funds Acceptable, with areas for Acceptable, with areas for
investment performance appropriate for you to invest improvement improvement
in and how well do they perform? If you haven’t chosen your own funds, you will be in the default fund.
Investment choice and performance
Is there a good range of funds if you want to make your own choice? How well do these funds perform? This section does not include the default :?l?^�
Good Good
Member service and Is your pension well run, and Excellent Excellent
�?jIlI???�??Iwl�do you receive good service?
Member engagement and wjj?lI�??Iwl�
Do you receive clear, high- quality communications? Are there tools available to help with your retirement planning?
Good Good
Accessing your pension What choices are available Good Good
when you come to take your money? Are there tools and support in place to help you make informed decisions?
Environmental, social and governance (ESG) investing
Is your pension pot invested responsibly?
Excellent Excellent
Investment pathways Are the right investment Good Good
choices available once you’ve started to take a flexible income?

4. 4 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024













You can read more detail throughout this report, but we have
summarised a few key areas below.
We maintained our rating of ‘Good’ for member engagement
and communication. This was one of our priorities for 2024
and the L&G communications team made significant progress
throughout the year to act on our feedback. Many new
developments were launched in the second half of 2024, and
we look forward to them being fully embedded when we next
share our report.
L&G launched the new �j?�JX�??� in September 2024 aimed at
helping you to better manage your pension pots and savings
– and thousands of you are already using it. L&G continued to
improve communications to make them more accessible and
inclusive, with help from specialist organisations. 13 of the
important communications you receive at key stages in your
savings and retirement journey were also tested and improved.
Another of our priorities was to oversee key developments to
support you as you approach and go through retirement. This
year L&G launched the Guided Retirement Planner, which
helps those of you over age 55 to see if you are ready for
retirement. Over 28,000 of you had already used it by March
2025.
Following the 2023 review of the default investment fund
options, L&G (with our support) began to move your pension
pots from the Multi-Asset Fund (MAF) to the Lifetime
Advantage Funds (LAFs) or Target Date Funds (TDFs). We
think 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 during this reporting
period. Because of this we have kept our rating of ‘Acceptable’,
with areas for improvement.
We are also pleased to welcome Linda Whorlow to the IGC.
She joined us in September 2024 after a range of leadership
roles across the spectrum of defined contribution (DC) and
defined benefit (DB) pensions, third party administration
services and actuarial consulting.
Rachel Brougham has stepped down after nine years as a
member of the IGC. We’d like to thank her for all her hard work
and we wish her well in her next role.
How to contact us
Looking forward
We look forward to seeing more improvements in 2025, many
of which were started during 2024 and are covered in this
report. We have set ourselves some priorities for the year:
• We will continue to monitor the change of default funds. If
you are in the MAF, your pension savings will be moved to
the LAFs or a TDF. You will receive a communication to tell
you more about this change.
• We will continue to oversee changes to the drawdown
service, including the introduction of an online drawdown
service for all members.
• Connected to this, we will monitor the implementation of
changes to investment pathways for drawdown, such as a
five-year reminder for members and a review of the mix of
investments for two of the pathways.
• We will review the updated Statement of Investment
Principles when it is completed later in 2025. It will contain
new data and information, plus any changes to the funds
that are available to you.
We mentioned in last year’s report that we would consider
working with external experts to develop our approach to
assessing the value for money you get. In 2024 we appointed
specialist advisers who helped us to review your scheme over
the year, and we will continue to develop our approach in 2025
and beyond.
Joanne Segars
Independent Chair of the Independent Governance Committee
September 2025
If you have any feedback or questions, or you need to tell us about an important issue that affects your pension, please
email us at:[email protected]
How to contact L&G
If you need to contact L&G about your pension, you can call 0345 070 8686. Phone lines areopen between 8:30am
and 7pm Monday to Friday. Call charges will vary. L&G may record and monitor calls and please be aware that helpline
colleagues cannot provide financial advice.
You can also email L&G at [email protected] Please remember not to send any personal, financial or
banking information belonging to you because email is not a secure method of communication.
More information about how to contact L&G can be found on L&G’s website, including how to register for Manage Your
Account (MYA), and how you can reach out to an expert using live chat withinX?w?]Il;XCw???^�

5. 5
2024 priorities
Our role is to assess the value for money you receive from your pension with L&G. We actively challenge where we think
improvements can be made.
Each year we set ourselves priorities to help make sure you receive value for the costs and charges that you pay. We identified
four key priority areas for 2024, alongside our aim to continue to be an effective, efficient, and fully skilled IGC. You can see these
below, along with L&G’s progress:
1. Monitoring the implementation of the new default funds
In 2023 we worked with L&G to review the default funds. This year we continued to work closely with L&G to monitor the
transition of members to the new default funds, the Lifetime Advantage Funds (LAFs) and Target Date Funds (TDFs). We
will continue to have oversight of the project and monitor the ongoing improvements to the LAFs and TDFs, to make sure
the changes happen smoothly and deliver the best results for members.
You can read more in default funds and their investment performance.L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

6. 6 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

2. Improving the drawdown service
We recommended improvements to the drawdown service for members (which lets you take money out of your pension
pot in retirement and leave the rest invested). L&G worked on its investment pathways, which are ready-made investment
options for your drawdown pot. With our support, L&G identified members that took money from their drawdown pot in a
different way to what we’d expect based on the pathways they had chosen. With our guidance L&G ran two initiatives to
contact some of these members to help them review their investment pathways choice.
The service will be further improved by the launch of an online drawdown service for everyone, which L&G plans to launch
later in 2025.
You can read more in accessing your pension.
3. Helping vulnerable members
The introduction of the Consumer Duty regulations from the Financial Conduct Authority led to a full review of member journeys by L&G in 2023. This review highlighted critical moments where L&G could better support vulnerable members. We continued to monitor the agreed developments and improvements tC?w?;Cw??X^�
L&G introduced a new step when answering the helpline. You will now be asked to let the team know about any specific
needs that you have so that the team can provide the most appropriate support. L&G also worked with the charity ‘ Turn2us’
to help members understand how taking their pension might impact their State benefits.
You can read more in member service and administration.
4. Investment options
We asked L&G to review how appropriate the size of the fund range was, to provide you with the right balance between choice of options and ease of decision making. We would like there to be a clear purpose for each fund in the range. The full review of the self-select range will take place in 2025 to coincide with the scheduled three-yearly (‘triennial’) review of all investments.
L&G introduced new Sharia investment options that follow Islamic principles, including the L&G Islamic Lifestyle Profile. The
new funds make it easier for members to invest in a way that is consistent with their faith and values.
You can read more in investment choice and performance.

7. Meet the IGC members
All members of the IGC are considered independent of L&G as they have not been employed by any firm within the
Legal & General Group within the last five years. They have not had any direct or indirect relationship of any description
within the Legal & General Group within the last three years, other than by their membership of the IGC.
How we monitor and review
our efectiveness
In 2025 the IGC commissioned an external evaluation
which was led by Neil Alderton at Lintstock Limited, who
has no other connection with L&G or individual committee
members. In line with best practice corporate governance
requirements, the committee periodically assesses its own
performance and challenges itself to continue to enhance
the level of oversight we provide for members.
This year we conducted an externally-led evaluation which
involved one-to-one interviews with each committee
member. We also invited members of senior management
and the independent Chair of the Legal & General Assurance
Society Ltd Board to contribute to the effectiveness review.
The interview questions were developed by Lintstock in
consultation with the IGC Chair and the Company Secretary.
They were designed to provide an overarching view of the
effectiveness of the committee, as well as build upon the
themes identified in 2023’s review.
The review focused on, among other things:
• the committee’s focus on members,
• our assessment of value, and
• the committee composition, expertise and dynamics.
Lintstock also conducted a thorough review of
previous committee papers, minutes and other relevant
documentation to provide context on committee matters and
the decision-making process, to help inform the one-to-one
interviews.
Following this review, Lintstock also attended a committee
meeting in person to observe the committee in action and
enable it to form an independent view of the meeting
dynamics. In addition, a review of the Chair’s performance
was also conducted.
The committee was taken through the report and the key
findings in detail by Lintstock and the conclusion of the
evaluation was that the performance of the committee
continues to be highly rated and demonstrates strong
independence from L&G.
The report also highlighted that:
• the committee has a tight grip on the core of its remit, as
defined by the COBS requirements, and
• the committee’s assessment and disclosure of whether
members receive value for money were among the
highest-rated areas of assessment, demonstrating that
the committee fulfils its core purpose effectively.
The committee has agreed an action plan for the coming
year, which includes any areas of improvement identified,
and progress to implement the agreed actions is underway.
Progress is monitored by the Company Secretarial team and
reported on at each meeting.
7

8. 8 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024









Joanne Segars,
IGC Chair
Joanne was appointed Chair of the IGC on
13 July 2022 and has been a member of
the IGC since January 2019.
Awarded an OBE for services to pensions in the 2003 Queen’s
Birthday Honours, Joanne is a well-known industry figure,
having held many high-profile roles including Governor of
the Pensions Policy Institute and board membership of the
Environment Agency, Pensions Europe and the Pensions
Infrastructure Platform. She has also held roles as Chief
Executive of the Pensions and Lifetime Savings Association
(now called Pensions UK) and Chair of the Joint Expert Panel
on the Universities Superannuation Scheme. Joanne is currently
Chair of Trustee at now: pensions and Chair of LGPS Central
Ltd. She also serves as an external expert on the Pension Fund
Governing Board at CERN in Geneva.
As well as a degree in Economics from John Moores University,
Joanne has an MA in Industrial Relations from the University of
Warwick.
Joanne is a keen traveller and photographer – especially social
documentary and portrait photography – and has recently
achieved a Higher National Diploma in photography.
Linda Whorlow
Linda was appointed to the IGC in September 2024.
Linda combines an executive and non-
executive career and has extensive
workplace pensions expertise accumulated over 35 years.
Linda is a non-executive board member of GAIN (Group for
Autism, Insurance, Investment and Neurodiversity) and was
formerly Managing Director of Aegon’s workplace savings
business and a non-executive director at Broadstone and
Origen Financial Services.
Prior to this, Linda held several specialist leadership roles
across the spectrum of defined contribution (DC) and defined
benefit (DB) pensions, third party administration services and
actuarial consulting, beginning her career at Norwich Union
(now Aviva).
Linda is a strong advocate and campaigner for improving
financial education and employee wellbeing in the workplace.
She is also an active mentor and coach, supporting diversity
and inclusion initiatives in the workplace.
In her free time, she enjoys cycling, walking her dog, and
spending time in France. She is also an avid rugby fan, a result
of many years cheering on her sons from the touchline.
Mark Ashworth
Mark was appointed to the IGC in April 2020.
Mark is a senior director at the LawDeb
Pension Trustees practice, which is part of
The Law Debenture Corporation p.l.c., a FTSE250 company.
He has experience of a wide range of schemes and sponsoring
employers, gained in more than twenty years with Law
Debenture, and has encountered most situations likely to face
pension schemes.
Mark has chaired DC committees for several large DC schemes
and the governance committee of a large contract-based
scheme; scheme governance and operational issues are among
his other key areas of expertise. He currently chairs and serves
on six other trustee boards of major UK pension schemes.
Mark qualified as a Barrister and as a Chartered Secretary.
In his spare time Mark enjoys cars which are almost as old
as he is.
Heather Lauder
Heather was appointed to the IGC in March 2023.
Heather has over 30 years’ experience
in retail and business banking, working
in NatWest, RBS, Tesco, Virgin Money and Coop banks in
large-scale customer strategy, customer operations, digital and
transformational executive roles.
In addition, she also has non-executive director experience in
both public and private sector organisations, where she has
been Chair of audit, risk and remuneration committees.
Over the last couple of years, Heather has been a non-
executive director with Zurich Assurance. She was appointed
Chair to professional services firm DSW to lead them through
an IPO in 2021.
Heather also supports local charities as a trustee and mentor.
Outside of work she enjoys cooking, travelling and walking.

9. 9 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024




Helen Carey
Helen has over 25 years' experience in DC
pensions, investments, and governance.
She is Director of AV Trinity, a Chartered
Independent IFA firm in Tunbridge Wells.
Until September 2025 Helen also served
as an independent member of the Hargreaves Lansdown IGC.
Helen brings extensive senior leadership experience, with
expertise spanning FCA and TPR regulatory frameworks,
pensions and investments, governance and risk management,
consumer duty, and customer experience.
A Chartered Financial Planner and Fellow of the Personal
Finance Society, Helen is also a qualified Pension Trustee
and an accredited member of the Pensions Management
Institute. She holds further qualifications in sustainable finance,
investment management, and project leadership, and continues
to contribute to professional standards through her work as a
senior examiner for the Chartered Insurance Institute.
Helen is passionate about good member outcomes and
financial education, having been a financial adviser for
twenty years, and played an active role in improving financial
understanding in schools and in the workplace.
In her spare time, she enjoys countryside walks with her dog,
reading, collecting old books, and creating art through drawing
and painting.
Daniel Godfrey
Daniel was appointed to the IGC in September 2017.
Daniel studied Economics at The
University of Manchester and went on to
become Marketing Director of Robert Fleming (now JP Morgan
Asset Management).
He’s worked in various senior positions including Chairman
of pfeg (Personal Finance Education Group), Director General
of The Association of Investment Companies and Director of
Corporate Communications at Phoenix Group Holdings Plc. He
was Chief Executive of the Investment Association between
X�?lX^�
Daniel is a Visiting Fellow at the Global Systems Institute at
Exeter University. He is a member of the Financial Reporting
Council’s Independent Advisory Panel. He has been appointed
by the Financial Conduct Authority to chair the Advisers’
Sustainability Group, which is developing best practice
guidance for financial advisers on addressing and dealing with
the key financial risks of climate change, biodiversity loss and
social disruption. He has recently been appointed as Senior
Independent Director at Trex Analysis, a spinout from Exeter
University’s Global Systems Institute.
Daniel enjoys watching football, eating good food and going to
the theatre and cinema.

10. 10
Transaction costs
The day-to-day management of your investments
involves buying and selling (trading) the
underlying investments as a necessary part of
achieving overall investment objectives.
This trading usually incurs costs known as
transaction costs, which cover things like taxes
�?lXwjjI??Iwl^�
2024 rating: Excellent
Why we gave this score
The costs and charges that you pay is a crucial part of assessing whether you receive value for money from your pension. Each year we commission an independent comparison of the costs and charges that you pay against other pension providers. This comparison shows that the costs and charges are very competitive. L&G has continued to invest in improvements (such as the �j‹�JX�??� and planning tools) that
increase the overall value for members, and it has not increased the charges that you pay.
You will generally pay three types of costs and charges which
cover the following:
1. The costs of running and administering the scheme
2. Fund charges for managing your investments
3. Transaction costs for buying and selling investments
If you are in a Group Stakeholder scheme you will see one
annual management charge, as the fund charges and the costs
of running the scheme are combined. L&G Independent Governance Committee
Annual report for the year ending 31 December 2024






Costs and charges

11. 11 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024
Positive developments in 2024
The government has put a maximum amount (or cap) on the
amount of money that can be charged for most investment
charges in workplace pension schemes, including the schemes
that we review in this report.
If you are automatically enrolled into your scheme, and don’t
make your own investment choice, the charge cap is currently
set at 0.75% for each year, or 75p for every £100 you have
invested. This cap increases to 1% (or £1 for every £100 you
have invested) for some members who have made their own
investment choice.
L&G has made sure that all charges are at or below these
legislative charge caps where they apply, with most members
paying between 0% and 0.50%.
L&G’s Fund Risk Oversight Committee shares regular reports
with us that cover the transaction costs that you pay. We
monitor, review and challenge these transaction costs at least
quarterly, and we have continued to conclude that you receive
good value for money in relation to these costs.
Independent research
An independent comparison report was commissioned to
compare the costs and charges that you pay L&G to those paid
by members of other providers’ workplace pension schemes.
Groups of similar sized employers, across a range of different
types of investments, were used for the comparison of costs
and charges. L&G performed well across all categories and
the report shows that the costs and charges that you pay are
generally in line with, or better than, the average.
Our assessment is that the costs and charges you pay are
highly competitive and reflect good value for money.
Areas for future focus
We would like to see L&G continue to offer highly competitive
costs and charges, and to keep these under review in 2025 in
order to maintain a score of ‘Excellent’ in this area.

12. 12
Default funds and their
investment performance
We support this change because we think the LAFs and TDFs
have the potential to produce better growth for your pension
pot over the long term. Unlike the MAF and FWMAF, the LAFs
and TDFs are designed around your target retirement age and
will automatically adjust the way your pension pot is invested
as you move closer to, and then into, retirement.
The MAF (including the FWMAF) was still the L&G fund where
most of your pension pots were invested in 2024. For this
reason, our assessment of the MAF had the greatest effect on
our overall score.
If you are still currently invested in the MAF, you will soon be
told when your pension pot will be moved (unless you have
opted out of the change), along with the other options available
to you.
2024 rating: Acceptable, with areas for improvement
Why we gave this score
Your pension pot is invested in a default fund. A workplace
pension default fund is the investment option your money
goes into automatically if you don’t choose your own funds.
It’s designed to suit most people by balancing risk and growth
potential.
The growth of your investments plays a big role in the future
value of your pension pot (alongside how much you pay in and
the level of costs and charges).
We have reviewed L&G’s default fund options and their
investment performance, focusing on:
• the Multi-Asset Fund (MAF),
• the Future World Multi-Asset Fund (FWMAF),
• the Target Date Funds (TDFs), and,
• the new Lifetime Advantage Funds (LAFs).
Following a full review of the default fund options, in 2024
L&G began to move your pension pots from the MAF (or
FWMAF) to the LAFs by default, or to the TDFs if selected
as an alternative default by a scheme employer. We have
been monitoring the transition and have been kept informed
throughout. L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

 

13. 13 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

























Positive developments in 2024
Over the year:
• We were consulted by L&G on the development of its
newly designed LAFs and welcomed their introduction
in 2024. An independent review has shown that LAFs
are expected to provide improved growth for members’
pension pots over the long term.
• We challenged L&G on the suitability of the MAF and were
encouraged that over 200,000 members’ pension pots
were moved from the MAF to LAFs and TDFs during 2024.
• One of our main areas of focus was to make sure that you
were given extra support to understand this important
change to your investments. To meet this objective L&G
provided tailored website pages and helpline support.
• L&G continues to be a market leader in investment
stewardship.
• L&G continues to engage with its independent investment
adviser which we view as a demonstrable sign of its
commitment to transparency and acting in your best
interests.
How the IGC monitored
the default strategies and
investment range
We receive updates from L&G’s Fund Risk Oversight
Committee at IGC meetings with presentations and
explanations of the activities that are in progress. Twice a
year we are also provided with a detailed update on fund
performance. This includes the default fund options.
This year we were also kept up to date with the transition of
members to the LAFs and TDFs. We review these activities at
our IGC meetings and provide our feedback. L&G also updates
us on the advice it receives from its independent investment
adviser.
Investment performance of
default funds
L&G regularly monitors the default funds to check how they are
performing against the funds’ objectives. It looks at whether
the default funds should deliver good retirement outcomes for
you. There are many factors that can affect the value of your
pension pot, such as:
• how well the funds have met their performance objectives
over short and, more importantly, longer periods of time,
• the effects of inflation,
• how and when you choose to take your pension pot,
• how much you and your employer contribute, and
• the charges that you pay to invest in each fund.
In our assessment we have:
• focused on the MAF as this was the main default fund and
is where most members were invested throughout 2024,
• given greater weighting to longer-term performance
because most members are invested for the very long term
(of 30 years or more),
• reviewed how well funds have performed historically
against their stated objectives, and
• compared performance against the default fund options
offered by other pension providers.
Investment performance over
the reporting period
Multi-Asset Fund (MAF)
The MAF is a single fund which does not change investments
or its risk profile depending on when you expect to retire. It was
designed to grow your pension pot over the long term while
providing some protection against volatility (how much the
value of your investments could move up and down over time).
Most funds have their performance measured against a
benchmark. An investment benchmark is a reference point
used to measure how well an investment is doing. It’s usually
made up of a group of similar investments, like a market index,
and helps you see if your fund is performing better or worse
than the wider market. Some funds set their own performance
objectives – either instead of, or as well as, using a benchmark.
When used, these objectives will normally specify a desired
level of performance over a certain period, such as achieving
a positive return of 4% greater than the interest which can be
earned on cash in each year.
While MAF performed on a par with its stated benchmark,
the ABI Mixed Investments 40-85% shares, it did not achieve
the level of investment returns we would have expected over
10 years. This was based on its approach to volatility (2/3rds
Developed Equity 50% GBP in the table), from all periods from
one year through to 10 years. Over the shorter term periods
(one and three years) that the IGC regards as less relevant,
MAF did not beat any of the comparators in the table. Recently,
L&G introduced a comparator of beating cash plus 3.5% each
year and, retrospectively, over the five years and 10 years, it
has achieved this.
Future World Multi-Asset Fund (FWMAF)
This fund is similar to MAF but includes index tilting
through Future World Index Funds. L&G tilts these
funds towards companies with higher environmental,
social and governance (ESG)scores and away from
companies with lower ESG scores. FWMAF also
includes some targeted investments in areas such as
sustainable global infrastructure and sustainable timber.

14. 14 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024









Target Date Funds (TDFs)
TDFs are a set of funds, each designed for people planning to
retire around a certain year. Or, in L&G’s case, within a period
of five years – such as 2025-30, 2040-45 etc. Members are
invested in the TDF closest to their expected retirement date.
The investment mix for each fund automatically changes over
time, starting with more growth-focused investments when
retirement is far away and gradually moving to lower-risk
investments (meaning lower risk from the ups and downs of
markets) as members get closer to retirement. These automatic
investment changes can be broken down into three phases:
1.Growth phase
2.Approaching Retirement phase
3.Retirement phase
The performance of the TDFs has been mixed with some
strong performance (especially over longer periods) but weaker
performance in the short term.
Using the TDF 2055-60 (Growth phase) as an example, this
�?�'�IXC�??`�
• exceeded its L&G investment growth target over the very
short term (the past year),
• failed to do so over the short to medium term (three and
five years), and
• met its target over the time since it was created eight
years ago.
While the TDF (Retirement phase) investments did have
positive performance, they did not achieve the level of
investment growth targeted by L&G over the short or longer
term – although it was only marginally behind its target if
measured over the past eight years.
L&G’s funds have traditionally focused less on certain markets,
such as the US, compared to the default funds of other pension
providers. This approach was chosen to help reduce how much
these funds relied upon the returns of the US market, even
though it might mean missing out on higher returns when these
markets perform well.
In 2024, L&G increased the TDF investments in US equity
markets and had a greater allocation in the newly launched
LAFs. However, they continue to have a lower proportion of
their investments in the US compared to many other pension
providers’ default funds.

15. 15 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024




Independent research
We used the findings from independent research to compare the performance of L&G’s default funds against the
default funds offered by other pension providers.
The charts in this section show the level of investment risk versus investment returns for members over specified periods.
The returns are measured against the vertical axis, and the risk taken is measured against the horizontal axis. For
example, where a fund has delivered a high return with a high amount of risk it will be plotted within the chart
in the top right-hand corner. Conversely, a fund that delivered a low return with a low amount of risk would be
plotted in the bottom left-hand corner.
Returns are calculated as gross, i.e. before charges have been deducted. This means that the actual returns
experienced by members will be slightly different to that shown here once charges have been accounted for.
Data is for the five years to 31 December 2024.
For members who are 30 years
from retirement
The following chart shows the risk and returns for members
who are 30 years from retirement.
In this period the MAF did not achieve L&G’s target level
of returns for members with a much longer period before
retirement. As the chart shows, the level of risk taken was
lower than most other providers, which contributed to the
lower levels of return.
The TDFs performed better than the MAF but not as well as
most other providers who offer TDFs. The level of risk taken
in the TDFs was also lower than most other providers, but not
lower than the MAF.
Risk and returns for members who are 30 years from retirement 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 5 - Year Annualised Return (% p.a.) 5 - Year Annualised Volatility (% p.a.)
L&G TDFs MT-only defaultsL&G MAF Median comparator GPP & MT defaults
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and you may get back less than the original amount invested. Asset allocation is subject to change.

16. 16 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024






 

For members who are one year
from retirement
The following chart shows the risk and returns for members at
one year before retirement.
In this period the MAF delivered higher returns than many of
the other providers included in the research. However, this was
done while taking more risk than many of the other providers,
which means members will likely have seen the value of their
pension pot move up and down in value more than others.
The TDF delivered lower returns than the MAF and most other
providers but at a lower risk than most other providers in the
research.
Risk and returns for members who are one year from retirement 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 5 - Year Annualised Return (% p.a.) 5 - Year Annualised Volatility (% p.a.)
L&G TDFs L&G MAF Median comparator GPP & MT defaults MT-only defaults
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and you may get back less than the original amount invested. Asset allocation is subject to change.
The new range of Lifetime Advantage Funds (LAFs)
The LAFs were introduced by L&G at the end of 2024. Like the TDFs, the LAFs are a range of funds which aim for a specific retirement date range where the investment mix automatically changes over time starting with more growth-focused investments when retirement is far away and gradually moving to lower-risk investments (meaning lower risk from the ups and downs of markets) as you get closer to retirement.
A key difference between the TDFs and LAFs is that the LAFs
include private market investment exposure.
Private markets investments may include:
• infrastructure projects: for example building renewable
energy sources, schools, hospitals, roads, bridges, power
plants and telecommunication networks,
• property: for example investments in office buildings,
warehouses or shopping centres,
• private credit: this is when private lenders rather than
traditional banks or public bond markets provide loans to
businesses, and
• private equity: these are shares of private companies that
are not traded on the public stock market.
We haven’t gone into detail about the new LAFs’ performance
in this report as they were only added in November 2024, and
it’s too early to comment at this time.

17. The Legal & General Independent Governance Committee
Annual report for the year ending 31 December 2023
Performance of the default funds as at 31 December 2024
Multi-Asset Fund
Fund Comparator
1-year performance
Fund Comparator
3-year performance
Fund Comparator
5-year performance
Fund Comparator
10-year performance
Fund Comparator
Performance since
inception
(From 12 January 2012)
Fund Comparator
Multi-Asset Fund
ABI Mixed Investment
40-85% shares
5.69% 8.17% 0.92% 1.80% 3.31% 4.00% 5.69% 5.35% 6.42% 6.30%
Cash +3.5% 5.69% 8.87% 0.92% 7.37% 3.31% 5.88% 5.69% 4.95% 6.42% 4.74%
CPI 5.69% 2.19% 0.92% 5.49% 3.31% 4.49% 5.69% 3.04% 6.42% 2.74%
2/3rds Developed
Equity (50% GBP)
5.69% 13.99% 0.92% 5.66% 3.31% 8.16% 5.69% 7.68% 6.42% 8.54%
Future World Multi-Asset Fund
Fund Comparator
1-year performance
Fund Comparator
3-year performance
Fund Comparator
5-year performance
Fund Comparator
10-year performance
Fund Comparator
Performance since
inception
(From 15 June 2018)
Fund Comparator
Future World
Multi-Asset Fund
ABI Mixed Investment
40-85% shares
5.73% 8.17% 1.04% 1.80% 3.41% 4.00% N/A N/A 4.51% 4.14%
Cash +3.5% 5.73% 8.87% 1.04% 7.37% 3.41% 5.88% N/A N/A 4.51% 5.49%
CPI 5.73% 2.19% 1.04% 5.49% 3.41% 4.49% N/A N/A 4.51% 3.78%
2/3rds Developed
Equity (50% GBP)
5.73% 13.99% 1.04% 5.66% 3.41% 8.16% N/A N/A 4.51% 7.51%
17

18. Target Date Fund (Growth phase)
Fund Comparator
1-year performance 3-year performance 5-year performance 10-year performance
Performance since
inception
v�I?wjXX�f�?l?�???Xw�
Fund Comparator Fund Comparator Fund Comparator Fund Comparator Fund Comparator
Target Date
�I?l�
� �??CX?^?�^?�^?�^?�^?�^?�^?�N/A N/A ^?�5.65%
2055-60
(Growth)
Target Date Fund (Retirement phase)
Fund Comparator
1-year performance 3-year performance 5-year performance 10-year performance
Performance since
inception
v�I?wjXX�f�?l?�???Xw�
Fund Comparator Fund Comparator Fund Comparator Fund Comparator Fund Comparator The Legal & General Independent Governance Committee
Annual report for the year ending 31 December 2023
Target Date
�I?l�
� �??CX?^?�^?�^?�^?�^?�^?�^?�N/A N/A ^?�3.68%
2020-25
(Retirement)
The value of an investment and any income taken from it is not guaranteed and can go down
as well as up, and you may get back less than the original amount invested. Asset allocation is
subject to change.
18

19. 19 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

Bespoke default funds
L&G continues to monitor all bespoke default funds and
engages with employers to ensure they are regularly
reviewing the suitability of these arrangements with their own
investment advisers.
Areas for future focus
We will continue to monitor the project to move those of
you invested in the MAF to one of the LAFs or TDFs. L&G
continues to work to build up the LAF strategy and commit
money to new investments. We will continue to have
oversight of this strategy as it develops.
We will also continue to work with L&G to make sure that it
explains the changes to members clearly and answers your
questions and concerns.

20. 20
Investment choice and
performance
A good balance of diferent types
of funds
In 2024 there were 78 funds available in the self-select fund
range.The intention of the range – should you wish to choose
your own investments – is to let you invest across a diverse
range of countries and economic areas as well as a range of
asset classes.
We think a good fund range – for those who want it – is key to
helping you reach your retirement goals, but that this needs to
be balanced with ease of choice and decision making.
Types of fund management
The self-select fund range includes funds that are either
‘actively’ managed by a fund manager (who chooses the
companies and other assets to invest in), or ‘passively’
managed funds that aim to produce returns by tracking the
returns of a specific index, like the FTSE 100 or the S&P 500.
Some are managed by L&G's Asset Management business and
some by other external fund providers.
2024 rating: Good
Why we gave this score
When we decide our rating for this area, we consider whether there is an appropriate range of funds available to those of you who make your own investment choice instead of using a default fund. These are known as ‘self-select’ funds and we look at whether you have:
• A good balance of different types of funds to pick from.
• Different types of fund management options available.
• A choice for those of you with specific investment
requirements or beliefs.
While we do not actively encourage members to switch out of
the default fund (which has been designed to be appropriate
for the majority of members, based on typical retirement
needs), we recognise that some members may wish to take
a more active role in managing their investments. For those
members, the self-select fund range is available. Overall, we
are satisfied that L&G has put together a good selection of self-
select funds, and it continues to introduce new and appropriate
investment opportunities for you to choose from. L&G Independent Governance Committee
Annual report for the year ending 31 December 2024






 

21. 21 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024











 




Investment performance and
oversight
Every three months L&G, alongside its independent investment
adviser, reviews how well all the self-select funds are
performing compared to their targets and objectives. We meet
regularly with L&G’s Fund Risk Oversight Committee and get
detailed reports and updates from each review.
The key findings for the self-select funds and the actions being
taken are:
• 95% of funds are meeting or beating their growth targets.
L&G is working on making improvements to four funds.
• 99% of funds have fund managers rated as suitable or
better. Following review in 2024, L&G has removed two
self-select funds, and members who were invested in
these funds were switched to a suitable replacement fund,
unless they chose to select a different fund.
• 99% of funds were rated as good or strong for responsible
investing. L&G will review unrated funds in 2025.
Positive developments in 2024
These are the improvements that have been made and
implemented throughout 2024:
Introduction of new Shariah investment options
In 2024, L&G introduced new options that follow Islamic
principles. These included:
• An expanded range of Shariah-compliant self-select
options. The new funds follow the Islamic principles of
investing, such as avoiding interest, gambling, alcohol, and
other forbidden activities.
• �?C �L&G Islamic Lifestyle Profile. This is an investment
strategy that automatically moves your money, over a
period of time, into different Shariah-compliant funds that
aim to reduce risk as you get closer to retirement.
These new options make it easier for members to invest
in a way that is consistent with their faith and values.
Since the funds were launched in October 2024 (and up
to the end of 2024), just under £2 million of assets were
invested by members (in schemes under the IGC’s oversight
responsibilities).
Areas for future focus
In last year’s report we updated you on our views on
recommended improvements to the self-select fund range and
the performance of these funds.
Many of these improvements are still in progress, and are
due to be implemented in 2025, including a full review of the
self-select range to ensure it remains appropriately aligned
to member needs and beliefs. While we would have liked to
have seen our recommendations further progressed within the
period, we understand the rationale for undertaking it in 2025
to coincide with the scheduled three-yearly (‘triennial’) review
of the self-select range. As part of the review in 2025 we
expect L&G to consider whether:
• The size of the fund range continues to be appropriate and
if there are opportunities to consolidate the fund range
to strike a better balance between ease of choice and
decision making.
• There is a clear purpose for each fund, and whether L&G
should seek to remove unnecessary duplication that could
lead to member confusion.
• The fund range continues to be appropriate for different
stages of members’ savings journeys, particularly for
members accessing their pension pots in retirement.
We look forward to hearing its recommendations and will
report on them in next year’s report.
We note that L&G is currently updating its Statement of
Investment Principles (SIP) which is expected to be published
in 2025. Following publication, we will consider how well the
funds have performed and if they support the commitments
made in the SIP.

22. 22
Member service and
administration
2024 rating: Excellent
Why we gave this score
When we decide our rating for this area, we look at a range
of relevant and important measures. These measures help us
assess the quality of service you receive.
For 2024, we asked the L&G operations team to focus on
maintaining its strong service levels and to continue to identify
and support vulnerable members.
Service levels
A service level is a maximum time limit for how quickly the
operations team processes your requests, like answering
queries or processing payments. The team maintained and
improved on the service levels that were delivered in 2023. In
2024, the team met their service levels in 98.75% of cases, up
from 97% in 2023.
The team also aims to answer your calls as quickly as possible,
even during busy times. In 2024, the team answered your calls,
on average, in one minute and 20 seconds. In 2023 the average
time was two minutes and 17 seconds. In one year, it has
almost halved the average time it takes to answer calls. This is
an excellent result. L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

23. 23 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024







Using your feedback to continue
to improve the service
Members are regularly asked for their opinions and feelings
about the services provided and whether they would
recommend L&G. This is measured using a Net Promoter
Score (NPS) which compares the percentage of members
who strongly recommend L&G with those who rate it less
favourably. A score above 40 is good, and above 50 is
excellent.
This year, L&G had its highest ever member recommendation
score with an NPS of +51 (up from +37 in 2023).
Member satisfaction also scored very highly with a score of
+83 (up from +79 in 2023), where +40 is considered ‘very
strong’. To measure this, you might be asked ‘How satisfied or
dissatisfied are you with the service you received from L&G?’.
We work with L&G to review member feedback and discuss
how it can improve its services for you. As an example, in 2024
L&G found that members taking some of their pension pot as
a lump sum were giving lower satisfaction scores and the time
taken was longer than members wanted. After looking into
the issue in more detail, it put in place extra steps, including
a simplified form and some proactive calls to members. This
quickly improved member satisfaction scores and reduced the
time to process these cases.
Managing complaints
Open complaints were at the lowest level in five years. By the
end of 2024, 72% of complaints were resolved within 10 days.
This is up from 60% in 2023. This supports members when it
matters and highlights success in resolving issues efficiently
and maintaining high service standards.
Outside recognition
The team was awarded the Institute of Customer Service
‘ServiceMark’ this year. It’s a national standard that assesses
levels of member satisfaction and service effectiveness. The
award puts the team in a stand-out group of businesses who
are known for excellent service. It shows that L&G is focused
on meeting the needs of members. It invests time and effort to
listen to your feedback and uses it to continuously improve its
services to you.
Independent research
These results were also validated by independent research
that we commissioned which compared L&G’s member service
and administration performance to other pension providers.
The independent research showed that L&G’s performance
has been strong and consistent over 2024, and it is among the
top 25% of pension providers in the research for areas such as
meeting its service levels and member feedback scores. The
independent research supports our rating of ‘Excellent’.
“It became clear right
from the start that the
team is committed to
delivering exceptional
customer service,
ensuring that every
interaction refects
its core values of
professionalism,
responsiveness and
customer focus.”
The Institute of Customer Service

24. 24 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024















Positive developments in 2024
In 2023, we challenged the operations team to continue to
identify and support vulnerable members and to find out
sooner if a caller needed more support.
Helping vulnerable members
A new set of rules, known as the ‘Consumer Duty’,
were introduced by the Financial Conduct Authority (the
industry regulator) in 2023. The rules are there to make
sure L&G puts your needs first, including those who are
vulnerable, at every stage of the member journey.
Described by the government’sMoneyHelper website,
the Consumer Duty states:
• products and services must offer value, be right for
you and be easy to cancel,
• key information must be clear and not hidden in
complex documents,
• support must be helpful and easy to access, and
• firms must help if you’re struggling or have a
problem.
We want to help you make good financial decisions. The
introduction of these regulations led to a very significant
programme of activities by L&G in 2023. There was
a full review of member journeys which highlighted
critical moments in the journey that could be developed
and tested to better support vulnerable members.
The operations team kept us updated on its progress
throughout 2023, and we’ve monitored these
developments and improvements throughout 2024.
In 2023 L&G updated many of its processes to help ensure that
vulnerable members are identified quickly, and their needs are
supported by the team.
In 2024, the operations team introduced a new step when
answering the helpline. At the start of every call, you are now
invited to let the team know about any specific needs that
you have. As a result, more members have shared a specific
need, and the team has been able to identify more vulnerable
members.
L&G has continued to review feedback, including any
complaints, from vulnerable members. This feedback and
analysis is then shared with the relevant teams to further drive
improvements in the support offered to members.
L&G also worked with the ‘Turn2us’ charity. Together they
helped members understand how taking their pension might
impact their State benefits. This service is available to all
members and is especially useful to help members identify
their own financial vulnerabilities.
In the yearly survey, vulnerable members gave the team
positive feedback. The average scores were:
• Listening to your needs – 75%
• Adapting our service to help you – 77%
Investing in people, processes
and technology
We recognise the importance of having the right people,
processes and technology in the operations team and the role
these play in providing continued improvement in, and quality
of, service levels.
Over the last year, we have been monitoring several L&G
initiatives, including:
People
A focus on structured training and a series of reviews for new
starters helps make sure that the operations team gets things
right the first time and that information provided to you is
accurate and clear.
A new initiative called ‘Pitch In’ has been rolled out and has,
so far, raised more than 1,000 ideas to improve member
experience.
It is also pleasing to note that fewer people are leaving the
team – turnover is down by a quarter from 2023. L&G has hired
a new customer service manager and four team managers for
its drawdown services. More than 30 new people have joined
the drawdown team. This includes four new specialists in
Quality Control and Quality Assurance.
Processes and technology
L&G is working on a large project to improve its technology.
It’s being modernised so that colleagues and members will
have access to the latest tools and features. Some of the
improvements this year included:
• Voice and live chat. A new service to help you find
information more easily when contacting L&G.
• Better systems for the team. All information is now in
one place, helping the team find what you need faster and
improve quality and security.
• L&G App. Some of you can now make changes to your
pension using the app.
• Improved document management. Better technology has
made handling documents easier. It means the operations
team can now review all paper documents quickly and
efficiently, getting questions and issues to the right team
– helping them to provide a better service to you. This has
led to a 10-point increase in member satisfaction.
The team has now won three innovation and sustainability
awards for modernising its pension administration technology.
The main aim of this work is to predict and avoid any issues
that might harm the services that the team provides to
members.

25. 25 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024






Quality checks and risk
monitoring
The team exceeded its 90% target for checking the quality of
its work. These checks look at the percentage of cases that the
team gets right the first time and help identify potential issues
or risks that could impact the service to members.
We also considered the potential impact of the drawdown
issues identified in the 2024 audit (see below). The volume
of drawdown cases is low at under 2% of member-initiated
interactions. However, each member is important, and it
is therefore important that all of the issues identified are
addressed, and this is now the case. It is also reassuring to see
that the position has now improved compared with last year.
After the reporting period, we also considered an internal audit
carried out by L&G of the sensitive claims processes which
identified some areas for improvement. The audit highlighted
that some controls had not worked as expected for a small
number of cases during the period 2020-2024.
Following a detailed review of the audit’s key findings
and recommendations, it was clear that L&G's decision to
temporarily pause certain claim reviews during the Covid-19
pandemic, while prioritising core recommendations and
payments, resulted in delays for some members. We recognise
that L&G’s decision was made in response to unprecedented
volumes and was intended to safeguard service continuity for
utilising resource to make payments. We note that L&G has
implemented a revised review framework in early 2024 and
additional remedial actions designed to ensure that appropriate
mitigations are now in place and that sensitive claims receive
the necessary care and attention.
The IGC’s view is that, although the number of cases
was small, the impact on vulnerable members and their
beneficiaries makes this a matter of concern. We expect L&G
to ensure the revised processes remain robust and consistently
applied, and we will review progress on this during 2025.
The annual independent review (AAF 01/20) looked at 80 of
L&G’s administration processes and risk controls. The report
once again gave an ‘Unqualified’ opinion which means that all
of the control objectives tested were achieved.
Areas for future focus
We expect L&G to keep up its high service levels.
In 2024, an audit of the drawdown area identified significant
areas for improvement. We have been monitoring progress
against the audit actions closely with the majority having been
completed by the end of 2024. New functionality was added
to the online portal, Manage Your Account (MYA), to improve
drawdown services so you have the option of completing more
processes online and faster. This has received positive feedback
from members.
We have asked the team to continue to work on improving the
drawdown service in 2025. This will include:
• Further increasing the drawdown services that you can
access online. This will include the option for you to
view and nominate your beneficiaries online from your
drawdown account, as well as the option to manage
your drawdown investments online. It will also include
introducing an online quote calculator to help you
understand how long your drawdown pot could last,
depending on how much and how often you make
?I?C?�??�?a?^�
• Adding additional quality checks to drawdown processes.

26. 26
Member engagement
and communication
2024 rating: Good
Why we gave this score
When we decide how to rate the different communications that
L&G produces for you, we look at whether they are clear and
good quality. We also think about whether they are right for
your needs at different stages of your savings and retirement
journey. We look at key data and feedback about how you
are engaging with your pension pot and we check whether
improvements to L&G’s communications and the introduction of
new tools help to increase your engagement.
Our review of what the communications team at L&G has
delivered this year shows that it has made significant progress.
• It has continued to improve Manage Your Account
(MYA). This is the online portal where you can keep track
of your pension pot. It has made it easier to use by adding
“quick links” to the documents and resources that you use
the most. The number of you using MYA has increased by
43% over the year to more than 12 million logins (up from
8.5 million in 2023). Plus, more of you are choosing to
access MYA through your mobile device. This has helped
cut down the number of calls to the customer helpline so
that it’s easier to get through for those of you who prefer
to call.
• It has added new tools to the Retirement Options pages. There’s now a tax calculator and a link to the Turn2us pension calculator, that helps you check the impact of taking money from your pension on any means-tested State benefits that you get.
• The Go&Live webpages (you can access these through your pension scheme’s microsite) have also been improved. These help you to better understand your money. The team made them simpler, reducing the number of pages from 85 to 39 and as a result, 40% more of you are using them, and 49% more are coming back.
For 2024, we asked L&G to make progress in some important areas. We wanted it to:
• Deliver its new member app (the L&G App) on time.
• Provide market leading communications to you.
• Improve its transactional communications to you. These
are the communications sent to you at key moments during
your savings journey. These include when you join the
plan, when you approach retirement and when you start to
take money from your pension pot. L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

27. 27 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024













Positive developments in 2024
A new app
One of the key services that we wanted L&G to deliver in 2024,
was the new L&G App for members. L&G launched this in
September 2024. It is aimed at helping you to better manage
your pension pots and savings. It is already being used by
thousands of you and many of you provided good feedback,
with 284 people rating it on Google and Apple stores by the
end of the year. The average score was 4.26 out of 5 at the end
of 2024 which puts the L&G App in the top 25% of apps from
similar providers.
L&G App
The new app lets you:
• See how much your pension is worth.
• See how your investments are performing.
• Keep your details up to date.
• Boost your financial fitness.
Download from the App store >
Download from the Play store >
Pensions journey communications
We have continued our focus on the improvements that L&G is
making to the communications that you receive at key stages
in your savings and retirement journey. L&G has improved a
number of these, including, for example, the pack welcoming
new joiners, as well as packs sent so that people can start
using their pension pot, and yearly benefit statements. The
team has used your feedback and special software tools to
help it. These tools tell it how easy the packs are to read. So
far, it has tested 14 documents, via Consumer Duty member
research, and improved 13 of these important communications
that you receive.
The new Guided Retirement Planner
Over the year, we have been working with L&G to agree
improvements to the support you receive when you are
planning for retirement. This has resulted in the launch, in
November 2024, of the Guided Retirement Planner (‘the
Planner’). It helps those of you over age 55 to see if you are
ready for retirement. The Planner breaks retirement into easy
steps and helps you set goals for your lifestyle and income and
looks at your options for using your pension pot. It then gives
tailored support, such as suggesting whether to combine your
pension pots, save more, or get financial advice.
8,187 workplace members had already used it by the end of
2024. Of these, one in three went on to create and finalise their
retirement plan. We are working with L&G to make sure that it
uses your feedback to keep improving the Planner.
Investment education
L&G also used your feedback to create new investment
education tools. These explain what the default fund is, and
how L&G designs it. They also tell you more about the risks and
benefits of picking your own funds from the range that L&G
offers. The tools include website pages with videos, as well as
posters to be used in the workplace by employers and emails.
Email campaigns
L&G sent a range of different reminder emails to help you
during the year. These reminded you to use Manage Your
�w?l?Xv�t�?�w�and the new L&G App. It also sent short
newsletters with helpful tips about saving for your retirement.
This year, 47% of you opened these emails. This is higher than
last year (38% in 2023) and higher than the industry average
w:X?^�

28. 28 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024





















Webinars
More than 14,000 of you watched the L&G pension webinars
over the year. They covered topics like:
• Making the most of your pension
• Starting to plan your retirement
• Approaching your retirement
• Setting out on your pension journey
• Financial wellbeing
• Responsible investment
They received good feedback with a combined rating of 4.6 out
of 5.
Accessibility
We have continued to work with L&G to ensure it provides
inclusive and accessible communications. L&G has added
more steps to test all new digital tools and information. It
tests its communications to make sure that content is easy to
understand, including for members with disabilities or who
need extra help.
The team also works with a range of organisations, including
specialist companies who help it to support members. This
includes:
• supporting those who are deaf, and
• working with the Royal National Institute of Blind People
(RNIB) to help members with visual impairments.
The team tests its online content and tools directly with
members, as well as using a digital accessibility company. It
gathers and uses regular member feedback to keep improving
the website.
We’ve been impressed with the level of research, testing and
changes being made to the communications you receive and
have been kept fully updated by the team on progress.
The annual member forum took place in November in
partnership with the Legal & General WorkSave Mastertrust.
The theme for 2024 was ‘Power in your Pensions’. Over
5,000 of you attended virtually on the day, submitting over
1,800 questions in total. You asked a wide range of questions,
from the basics of how pensions work to questions about
investments in private markets. We were pleased to receive so
many positive comments from those who attended.
How the IGC monitors member
engagement
One of our responsibilities is to ensure the communications you
receive are helpful, engaging, clear and consider the different
characteristics, needs and objectives you have. Throughout
the year, we were kept up to date on the progress of the
communications plan, including the plans for improving the
pensions journey communications, the launch of the new
�j‹�JX�??�and the new Guided Retirement Planner. We also
regularly reviewed important member engagement metrics,
to understand, for example, whether members are registering
for and using new tools, like the L&G App, and whether
communications are successfully encouraging members to
complete important tasks, like keeping their nomination of
beneficiary forms up to date.
Independent research
Independent research commissioned by the IGC rated the
overall quality and range of L&G’s member communications
as ‘Good’. Communications were described as high quality
and compared to the other pension providers, the range of
communications provided by L&G was considered ‘Strong’.
Examples of these included the personalised video pension
benefit statements and nudge communications you receive in
the months before retirement.
L&G had a higher number of you open your email nudges
compared to other providers over 2024. The �j‹�JX�??� was also
rated as ‘Good’ although it was recognised that it is still being
improved with new functions being gradually added over time.
Areas for future focus
We can see that L&G continues to work hard to keep member
communications fresh and interesting, and to broaden the types
of communications that you receive. We expect this work to be
maintained, in addition to L&G delivering the following goals in
2025:
• Keep adding helpful new tools and services to the L&G
App.
• Start sending more tailored help to you. These
communications could be based on where you are in your
savings journey, your interests and how you prefer to
manage your pension pot.
• Keep improving the support for those of you using income
drawdown.
• Extend the video pension benefit statements to members
who have a pension pot that they haven’t yet taken but
they’re not currently saving into.
• Continue to improve the Guided Retirement Planner and
make it available to members well in advance of key ‘at
retirement’ decisions.
• Make sure the new �j‹�JX�??� works well alongside
Manage Your Account (MYA).

29. 29
Accessing your pension
to you by post, or by email if the team have an email address
for you.
Communications about your retirement are designed to reflect
your personalised options based on details about you and your
pension pot. All communications you receive are saved so you
can look back at them whenever you want to. You can update
your preferences in Manage Your Account (MYA) to let L&G
know how you would like to receive information about your
pension pot.
You can find out more about L&G’s communications in the
Member engagement and communications section.
Support to help you with your
retirement choices
L&G provides you with a range of personalised retirement
planning tools to help you make an informed decision about
how and when to use your pension pot. We’ve worked closely
with L&G to further improve these over the year.
You can access a range of helpful information about
approaching retirement through Manage Your Account (MYA).
This includes case studies about your options for using your
pension pot early and links to the financial wellbeing site,
Go&Retire.
2024 rating: Good
Why we gave this score
Retirement isn’t the same for everyone. So, it’s important that
you have a range of options when deciding when to take your
pension pot and how you can use it. We also recognise that
these things can be big decisions, so it’s essential to us that
you’re provided with clear and easy to understand information
about your choices and given the appropriate support and
warnings about the risks you should consider. We also expect
these options to be convenient and easy for you to access.
The measures we look at when deciding our rating for this
area are:
The range of options you have
L&G offers you a full range of retirement options, including:
1. Buying a guaranteed income (an annuity).
2.Taking your pension pot as cash.
3. Taking a bit out at a time and leaving the rest of your
money invested (drawdown).
Or you can have a combination of all three.
Clear communications
We work with L&G to make sure that the information you
receive about your retirement options in the run-up to
retirement (usually five and 10 years before), and at retirement
is clear and easy to understand. Information is usually sentL&G Independent Governance Committee
Annual report for the year ending 31 December 2024

30. 30 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024
















If you are aged 45 or over with a pension pot of £20,000 or
more, you can access a paid-for advice service through
Legal & General Financial Advice (LGFA). You can also take
guidance through Pension Wise, a government service offering
free and impartial pension guidance for those of you who are
over 50.
Ease of accessing your
pension pot
L&G’s ambition is to send most member communications
through digital channels, whether that’s through email or
through Manage Your Account (MYA) and this continues
to evolve. Currently all retirement options can be accessed
through a secure online process from MYA. Some of you can
also use this to move your pension pot into drawdown. The
launch of an online drawdown process is a key focus for 2025.
We support L&G’s move to expand the online process for more
members but also encourage it to continue to offer good quality
offline routes for members to access their pension pots too.
L&G’s online process to take a cash
lump sum from a pension pot was used
by over 7,300 of you in 2024 and had
a customer satisfaction score of 4.64
out of 5.
All retirement options are supported by a simple paper-based
process, which has been improved in recent years.
A dedicated team is also available for support by phone for all
options. Some options (like taking out a cash lump sum) can be
completed over the phone, which removes the need for you to
complete any paper forms.
Positive developments in 2024
In 2023 we asked L&G to deliver improvements around the
tools and information that help you make an informed choice
about using your pension pot.
These are the improvements that have been made and
implemented throughout 2024:
Improved communications
In 2024 some of the communications that you receive about the
different ways to use your pension pot have been improved,
based on rigorous testing with a broad sample of members.
Following testing, the communications designed to support you
with transferring out, transferring in and taking your pension
pot all as cash were updated. These now:
• Use less jargon and provide definitions where jargon or
technical terms are unavoidable.
• Further simplify complex information that testing showed
can be hard to understand.
• Have a simpler structure and key information is closer to
the beginning.
• Include improved signposting to external information and
available guidance.
• Provide extra support and guidance to help you fill in any
forms needed.
Improvements to Manage Your Account (MYA)
To further protect you against the risk of fraud, L&G introduced
multi-factor authentication.
New and improved online planning tools
• Guided Retirement Planner. This was launched in
November 2024 for those of you over age 55. 8,187
members had used the planner by the end of 2024, which
is encouraging. The planner is designed to help you to plan
for retirement in a way that covers all your savings, not just
your L&G pension pot. It will help you to understand what
your income in retirement might look like and where you
might need to save more to meet your retirement goals.
• Tax calculator. This new tool was launched along with a
video to help you to understand how tax works when you
start using your pension pot. It also helps you understand
the possible impact on the tax that you might pay if you
take cash in one lump sum, rather than through a series of
smaller lump sums over a longer timeframe.
• Turn2us benefit calculator. This year L&G partnered with
Turn2us, a charity that helps you to understand what State
benefits you can claim. This is important to those with
limited savings. It’s also essential to understand if you will
continue to rent in retirement, or rely on State benefits as a
core part of your retirement income.
Improved digital retirement options processes
• Taking a cash lump sum. Nearly 70% of you chose to take
a cash lump sum at retirement in 2024. L&G has improved
the digital process, with more signposting to the new and
improved online planning tools.
• Buying a guaranteed income (an annuity).L&G has
improved the application process for buying an annuity,
so that this can now be completed on a mobile phone or
tablet, as well as through a desktop device.

31. 31 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024









If you decide to buy a guaranteed income
L&G offers you the choice of buying an annuity that’s
?�?IX:w?`�
• the rest of your life, or
• up until an age that you choose. This fixed term
annuity can be bought with or without a cash lump
sum at the end of the period, known as a ‘maturity
lump sum’.
Buying an annuity is usually an irreversible decision, so
it’s crucial to shop around to get the best deal you can
to meet your needs.
Improved options for your loved ones in the event
of your death
If you let L&G know who you wish to leave your pension pot to
when you die (known as nominating a beneficiary) your chosen
loved ones can now access all these retirement options too,
unless their claim is below £1,000, when they can just take a
cash lump sum.
You can tell L&G who you would like to leave your pension
pot to if you were to die before using it by updating your
beneficiary details in Manage Your Account (MYA).
Independent research
An independent comparison of the options that L&G offers you
at retirement to those of other pension providers showed that
the options across all providers were similar, although L&G
came out at the top end. This independent comparison was
based on:
• The range of options available to use your pension pot,
including the flexibility of these options.
• How you can review your options and then make a choice.
• The support offered to you at retirement, as well as any
support in retirement depending on the option that you
choose.
However, although there is good flexibility in how you can take
your pension pot, L&G was the only pension provider to impose
a £2,000 minimum limit for taking a partial cash lump sum
(known as an uncrystallised funds pension lump sum) outside
of the flexible income drawdown process. We encourage L&G
to consider whether this minimum limit remains appropriate
and report its findings to us ahead of next year’s report.
All pension providers received a ‘Good’ score and were
considered to offer a wide range of guidance and information
when needed.
Areas for future focus
These are the areas for improvement that we have asked L&G
to focus on in 2025, with the aim of improving the overall rating
:w?X?CI?X�?? �?`�
Improving the drawdown service
Over the year, L&G has made some improvements to the way
that it helps you choose and manage what you have moved
into drawdown, including your investment pathways options.
You can find out more about the investment pathways in
the section about them.
However, there are still improvements to be made to the
drawdown service based on our recommendations from last
year that have yet to be implemented.
L&G continues to work on the improvements that we have
highlighted, alongside a broader project to enhance the
drawdown service for everyone, and we look forward to seeing
these improvements put in place in 2025. These are:
Launching an online drawdown application for everyone.
About 19% of you chose to take a bit out of your pension pot
and leave the rest of your money invested (drawdown) in 2024.
But we expect that this number will grow over time. At the
moment only Personal Pension scheme members can move
into drawdown through an online application process. This is
the most used method for these members over a paper-based
application process, or by phone. L&G aims to launch the new
online drawdown application for Workplace members in 2025.
This new online drawdown service is being designed based on
all the member research and insights collated by L&G in 2023
and 2024.
Adding more support to the online process.
The new online service will include more support and
information to help you make investment pathway choices, as
well as better prompts around important areas to consider.
Letting you do more through the�j‹�JX�??�
The new mobile app was launched in September 2024. It
helps thousands of you manage your pension pots on the go
while you’re saving for retirement. In 2025 we’ve asked L&G
to extend the app’s functionality, which we have highlighted
as being limited currently, to include some of the retirement
planning tools, and content and information to help you review
and choose your retirement option.
Extending financial advice
In 2025 L&G plans to extend its in-house, independent advice
proposition offered through Legal & General Financial Advice,
to make sure it gives members the right level of support with
retirement decision-making. An Investment advice service, as
an option alongside the Pension and Retirement advice service,
will also be introduced.
L&G will move to a fixed-fee charging structure to make sure
the service offers value for money.

32. 32
Environmental, social and
governance (ESG) investing
2024 rating: Excellent
Why we gave this score
Overall, our assessment is that ESG investing remained
a key area of strength for L&G in 2024. L&G continues to
demonstrate a strong commitment to responsible asset
ownership, maintaining a leading position within the industry.
The independent research we commissioned has shown that
L&G’s approach to ESG investment is consistently rated as
either strongest or above average in comparison with other
participating pension providers. Further details can be found
later in this section. L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

33. 33 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024












What is ESG investing?
The money in your pension pot is invested, for example, in company shares (called equities), government bonds and
company debt (called corporate bonds). When L&G manages the funds in which your pension pot is invested, it takes many
different factors into account including environmental, social and governance (ESG) considerations. These can cover a wide
range of investment opportunities and risks, ranging from the short term to those that L&G will manage for many years or
even decades. Some examples for each are:
• Environmental issues -including climate change and nature loss.
• Social issues -including employment rights and fair pay through to engagement with employees, customers
and suppliers.
• Governance issues -including executive pay, the transparency of corporate reporting and shareholder rights.
There are many benefits to managing ESG issues, including improved risk management, the potential for greater
investment returns over the long term, and contributing to global sustainability goals.
Visit the ESG Hub
You can find out more about L&G’s approach to ESG investing on the ESG hub.
In 2024 the ESG hub was updated to include more information, created for you, including:
• graphics-based fund overview documents for key funds used within the main default investment options,
• an updated video all about ESG, and
• updated summaries of key documents.
Positive developments in 2024
Active Ownership in 2024
Active Ownership is L&G’s commitment to protecting and
helping your pension pot to grow over the long term by
influencing the behaviour of the companies it invests in.
Large-scale risks, such as climate change, global health crises,
or poor corporate governance, can affect not just individual
companies, but entire markets and economies. These are
known as systemic risks, and they have the potential to disrupt
the broader financial system and future investment growth.
That’s why we support L&G’s work to actively engage with
companies, regulators and policymakers to spot these systemic
risks early, raise awareness and take action to achieve positive
change. In 2024, L&G engaged with 3,447 companies (up from
2,050 in 2023) including 3,617 climate-related engagements
(up from 2,021 in 2023), 753 on social issues (up from 354 in
2023) and 694 on governance matters (up from 123 in 2023).
One of the most powerful engagement tools L&G uses
is shareholder voting rights. In 2024, it voted on 4,030
shareholder-proposed resolutions to hold company boards to
account and raise market standards (this is up from 3,713 in
2023).
You can find out more about L&G’s approach to ESG investing
on the ESG hub.
Climate Impact Pledge
Climate change is an important systemic risk that could affect
the long-term value of your pension pot. That’s why L&G
introduced the Climate Impact Pledge.
The Climate Impact Pledge is a targeted engagement
programme focused on key companies across 20 ‘climate-
critical’ sectors (e.g. oil & gas, electric utilities and property)
whose actions could significantly affect progress on climate
change.
As part of this pledge, L&G:
• Assesses over 5,000 companies on their climate strategy,
governance, risks & opportunities, reporting and how well
they align with global climate goals. Companies receive
a ‘traffic light rating’ based on their performance against
80 measures. In 2024 L&G updated these assessments
by introducing new minimum standards and additional
evaluation criteria, and it began publishing changes to
companies’ ratings.
• Engages with companies that are assessed as
underperforming or could improve further, encouraging
them to strengthen their approach to climate change.
In 2024, L&G contacted over 2,500 companies in this
category, with nine out of 10 of the most influential
companies responding.
• Uses voting power at annual general meetings when
companies fail to meet L&G’s minimum standards. The aim
is to promote positive change, but where a company fails
to make meaningful progress over time L&G may choose to
sell its shares in that company.
In 2024, L&G published a member-friendly version of its
Climate Impact Pledge report.

34. 34 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024







ESG integration
In last year’s report, we highlighted that the Multi-Asset
Fund (MAF) – the L&G fund where the majority of members’
pension pots were invested in 2024 – had limited ESG
integration beyond L&G’s overarching net-zero commitment.
Although the MAF incorporates some ESG elements, including
decarbonisation targets, and ESG asset class scoring, it does
not apply ESG tilting. This refers to investment exposure being
tilted away from fossil fuel-related businesses and toward
companies which contribute to climate change adaptation,
mitigation, and environmental protection. MAF therefore
remains the least ESG-integrated of L&G’s default fund
options.
Over the course of 2024, progress was made in gradually
transitioning members from the MAF into L&G’s range of
Target Date Funds (TDFs), which do apply ESG tilting and
include specific climate change considerations. This shift
represents a meaningful improvement in ESG integration,
with the transition to TDFs expected to continue enhancing
members’ exposure to more sustainably managed assets. As
this migration progresses, the overall ESG profile of the default
funds will be significantly strengthened.
Lifetime Advantage Funds
We have continued to challenge L&G to enhance its default
funds. In 2024, the Lifetime Advantage Funds were updated
to include a 15% investment in a new underlying component
called the L&G Private Markets Access Fund. This change
brings a number of potential benefits:
• greater opportunity to invest in sustainable high-growth
sectors such as clean power and affordable homes,
• increased long-term growth, and
• improved risk management through a wider range of
investments (also known as diversification).
Task Force for Financial Disclosures reports
L&G has published its latest set of Task Force on Financial
Disclosures (or ’TCFD’) reports.
There are two TCFD reports, depending on which scheme
you’re a member of:
1.WorkSave Pension Plan
2.Group Stakeholder Pension Plan
These reports show carbon-related (and other greenhouse
gases) emissions data for L&G’s funds and lifestyle profiles.
We track progress against net-zero carbon emission targets
for the main default funds that most of your pension pots are
invested in.
Net zero means cutting carbon dioxide (one of the key
greenhouse gases) to as close to zero as possible, with
remaining emissions re-absorbed or removed from the
atmosphere, for example, by oceans, forests or carbon capture
technology. It also requires significant reductions in other
greenhouse gases, particularly methane.
Better information to help you make informed
choices
New rules for the information that L&G shares with you about
responsible investing came into force in 2024. This includes:
• the new Sustainability Disclosure Requirements, and
• additional anti-greenwashing rules.
These new rules aim to provide you with better, more
transparent information to help you make informed choices
when considering investment funds for your pension pot that
claim to have positive environmental impacts.
Continuing to encourage you have your say
If your pension pot is invested in one of the main default funds
you can continue to access the Tumelo platform. Tumelo
lets you tell L&G how you would vote on issues like diversity
and inclusion, climate change, senior management pay and
human rights. This means that your voice is heard by L&G’s
Responsible Investment and Stewardship team, who can
consider your responses when deciding how to vote.
You can access the Tumelo platform from Manage Your
Account (MYA).
Although L&G integrates ESG considerations into its
investment decision-making and stewardship practices,
this does not guarantee the achievement of responsible
investing goals within the portfolio. It should be noted that
diversification is no guarantee against a loss in a declining
market.

35. 35 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024









Independent research
We commissioned independent research to assess L&G’s ESG
credentials against other pension providers. The results, along
with our own internal assessment, reinforced our decision to
maintain an ‘Excellent’ score for this area.
The majority of funds available to you were rated as ‘Strong’
in relation to their ESG considerations – the highest rating
available.
Our independent review of
L&G’s ESG policies
Each year, we review and analyse the policies
L&G has in place relating to ESG financial
considerations, non-financial matters, how ESG
is considered in the investment strategy and the
adequacy of policies on stewardship. We also
review the activities of the Responsible Investment
and Stewardship team.
Following our assessment, we are satisfied that the
current policies:
• meet the requirements and are of good quality,
• have been designed to properly consider risks
or opportunities, and
• take into account your needs and expected
investment timeframes (both short and long-
term).
We also concluded that the right systems are also
in place to make sure the policies are implemented
correctly.
We recognise the strength of L&G’s approach and
leadership on these areas.
External recognition for excellence
In 2024 L&G was awarded a 5-star rating in the Principles for
Responsible Investment (PRI) report. This is the highest rating
possible in the largest global report on responsible investment.
It also received an A+ stewardship score from InfluenceMap,
an independent think tank that uses data to analyse how well
aligned a company’s climate policies are with the goals of the
Paris Climate Agreement.
L&G was also recognised by the industry, winning an award for
effort in responsible investing from the Pensions Age Awards
(UK), for Sustainability Provider of the Year.
Areas for future focus
Last year we said we would like to see the Statement of
Investment Principles (known as a ‘SIP’) evolve to reflect new
information and data that is available, and that we expected
this to be completed in 2024. This is still being progressed by
L&G, and we expect these updates to be completed in 2025.
We will track progress of these updates and consider the
effectiveness of the updated documents.
Statement of Investment Principles
This sets out what L&G aims to achieve with the
investment options offered to you and shows how its
investment principles guide the way in which your money
is invested. They can be accessed through Manage Your
Account (MYA).
Once again, we have rated ESG investing as ‘Excellent’. But we
recognise that there is much more that pension providers can
do to drive forward ESG within both investment design and
stewardship. We will continue to monitor and challenge L&G
on its approach to ESG investing and report our findings in next
year’s report.

36. 36
Investment pathways
2024 rating: Good
Why we gave this score
If you choose to use your pension potto give you a flexible
income in retirement, you’ll move some (or all) of it into a
special pot called ‘drawdown’. This lets you draw money down
from it flexibly, as explained in the box below.
Your drawdown pot will be invested, and you can take a
regular income from it, and/or withdraw cash amounts as and
when you want to. You can also choose to use some or all of
your drawdown pot to buy a guaranteed income (called an
annuity) at any time. L&G Independent Governance Committee
Annual report for the year ending 31 December 2024

37. 37 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024










How do investment pathways work?
An investment pathway is a ready-made investment option for some or all of your drawdown pot.
You will be asked to choose one or more options based on how you intend to use your drawdown pot over the
next five years. Behind each of these is an investment option, targeted to meet the aims of each investment
pathway to support your retirement needs. These investments are managed for you by L&G.
The investment pathway options are:
1.I have no plans to touch my money in the next five years.
2.I plan to set up a guaranteed income (annuity) within the next five years.
3.I plan to start taking a long-term income within the next five y �???^�
4.I plan to take out all of my money within the next five years.
With investment pathways you can:
• choose one option, or
• combine multiple options.
You could also decide not to select an investment pathway and make your own investment choice instead.
Plus, if how you intend to use your drawdown pot in retirement changes, you can switch investment pathways (or
your own investment choice) at any time to one that better refle??X?C�??X?w?X?�?l?X?wXw^�
Investment pathways are available to both Workplace and
Personal Pension scheme members. Each year L&G reviews
the investment pathways it offers, and how members are using
them, and shares its findings with us.
Over the year L&G made some improvements to the way that
it helps you choose and manage your investment pathways.
However, there are still a number of improvements to be
made based on our recommendations from last year. We’ve
summarised these later in this section and we look forward to
seeing the outstanding items implemented in 2025.
L&G’s investment pathways options were also included in an
independent study that compares them against other pension
providers’ investment pathways. The results from this study
were shared with us also.
Based on our assessment of the information that has been
shared, we believe that the investment pathways available
continue to be appropriate for the majority of members. The
way your money is invested is still appropriate and, we believe,
delivering value for money. We are satisfied that L&G keeps
this under regular review.
How members use investment
pathways
We consider two key areas when we look at member
behaviour:
1. the investment pathway choice that you make when you
first move into drawdown, and
2.if your investment pathway is in line with the way you take
money from your drawdown pot.
Your initial choice
L&G conducted research into whether you feel confident in
making an investment pathway choice. This research showed
us that half of you find it difficult to choose the option that best
fits your needs.
To tackle this, we asked L&G to ensure the lessons learned
from this research are incorporated into the design of the new
online drawdown quote and apply journey. As part of this
development L&G has already tested the investment pathway
selection journey with members and found that almost 90% of
people were able to understand and choose the best option for
their needs.
How you take money from your drawdown pot
Sometimes members take money from their drawdown pot
in a way that is different to what we’d expect based on the
investment pathway that they have chosen.
With our support, L&G identified members who are doing this.
In 2024 L&G ran two initiatives to contact a segment of these
members and help them review their investment pathway
choice and make a switch if appropriate. A sample of these
members was contacted by phone, and all were followed up
with by letter or email. The overall number of people who
switched was small, but the conversations helped the team
understand more about member behaviour and their intentions.
This will be used to continue to develop the information that
you receive about investment pathways once you are eligible.

38. 38 L&G Independent Governance Committee
Annual report for the year ending 31 December 2024







Launching an online drawdown application for Workplace
members
Currently only Personal Pension scheme members can move into drawdown through an online application process. Most of
these members use the online process rather than the paper-based or phone application process.
L&G is aiming to launch a new online drawdown application for Workplace members in 2025. This new journey is being
designed based on all the member research and insights collated by the team in 2023 and 2024. The new online journey
will include more support and information to help you make investment pathway choices, as well as better prompts around
important areas to consider.
A new version of the online process has been tested with some users, and the testing has shown that it delivers improved
results compared to the current paper-based process. L&G continues to look at ways that it can improve it further.
Independent research
We (through an independent consultancy) have carried out an
independent review to compare L&G’s investment pathways to
those of other pension providers.
The number of you who are eligible to move into an investment
pathway, and who choose to, is about 20%. Most choose
Pathway 4 (which is designed for those of you who plan to take
out all of your money within the next five years). This is broadly
in line with other pension providers.
The review reinforces our view that the investment pathways
remain designed and managed in the interests of pathway
investors. L&G continues to monitor how members use
their drawdown pot to check that it matches the aims of the
investment pathways that they are invested in. This is in line
with other pension providers. However, the research conducted
by L&G to understand the choices that you make, and why,
in order to improve your experience goes beyond what many
other providers are doing.
The review considered the costs and charges that the
investment pathways providers deduct when members are
invested in an investment pathway. L&G’s charges, compared
to other providers, are in the lower range for Workplace
members and in the midrange for Personal Pension scheme
members.
Another area of the review looked at the mix of assets across
all four investment pathways, which were shown to be in
line with other pension providers. However, the external
benchmarking conducted in 2023 and 2024 highlighted that
two investment pathways (Pathways 2 and 4) have higher
expected returns (and are therefore more likely to see larger
ups and downs in value), when compared to other pension
providers.
Areas for future focus
In last year’s report we updated you on our recommended
improvements that we asked L&G to carry out. Three of these
are still in progress, and are due to be implemented in 2025:
• Introducing a five-year reminder for members who
have chosen investment pathways to make sure that
their choice is still right for them. Once introduced, L&G
will review whether five years is the most appropriate
frequency for the communication and share its finding
with us.
• Launching an online drawdown application for
Workplace members.
• Changing the mix of asset classes that Pathways 2 and 4
invest in. L&G is continuing to review the asset allocation
and will keep us updated on the changes that it makes to
where your money is invested when using an investment
pathway. L&G completed these changes in June 2025.
Plus for 2025, we have asked L&G to:
• Continue to communicate with members who are
currently taking money from their pension in unexpected
ways. These communications will include a reminder of
the purpose of the pathway that they have chosen and will
help members make a switch as appropriate.
We will continue to monitor the results of these changes and
share our findings in next year’s report.

39. L&G Independent
Governance Committee
Annual report for the year ending 31 December 2024