Aegon LifePath Flexi 2034–2036: Better Than Peers, But Still a Costly Choice

Target-date funds promise peace of mind. They adjust automatically as you approach retirement, shifting from equities to bonds, supposedly protecting you from a late-stage market crash. The Aegon BlackRock LifePath Flexi 2034–2036 is one such product. But while it beats its immediate peer group, it still leaves long-term savers dramatically poorer than they could be.

Review of Aegon BlackRock LifePath Flexi 2034–2036 Fund Performance.pdf

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The Numbers

Over the past five years, the fund has delivered a +43.9% total return — equivalent to 7.6% per year compounded.

That’s better than PN Flexible Investment, which managed only +25.6% (4.7% p.a.). Aegon wins the marketing battle against its low bar of comparison.

But set against real benchmarks - global and UK equities - it falls short:

• MSCI World (GBP, TR): ~+84% (~13% p.a.)

• FTSE All-Share (TR): ~+72% (~11.5% p.a.)

• Aegon LifePath Flexi 2034–36: +43.9% (~7.6% p.a.)

The Opportunity Cost

On £100,000 invested over the last five years:

• Aegon LifePath Flexi: £143,900

• MSCI World: £184,000

• FTSE All-Share: £172,000

That’s a gap of £40,000 in just half a decade.

Stretch it to 20 years and the difference becomes catastrophic:

Investment 20-Year Value of £100k (2034–36)

Aegon LifePath Flexi £433,000 MSCI World (GBP, TR) £1.15 million

That’s a £720,000 shortfall - the price of “safety.”

Why the Lag?

1. Built-in caution: Target-date funds move steadily into bonds. That may cushion some volatility, but in a rising-rate world bonds have been a drag.
   

2. Peer group illusion: Beating PN Flexible Investment isn’t the same as keeping up with the actual global market.
   

3. Compounding loss: Even a small gap each year snowballs into six-figure sums over time.

The Verdict

Aegon LifePath Flexi 2034–2036 isn’t terrible. It has beaten its peer group convincingly. But pensions aren’t about beating weak peers - they’re about maximising compounding over decades.

And on that score, this fund fails.

It offers comfort, yes. But comfort comes at a staggering cost: hundreds of thousands lost in potential growth.

The lesson is simple: if you want safety, buy government bonds. If you want growth, buy equities. If you want the illusion of both, buy a target-date fund — and pay for it with your future wealth.

Disclaimer: This content is opinion based on the disclosed facts and sources above, including fund factsheets, benchmark data, and publicly available filings as at time of publication. An honest person could hold this opinion on those facts (Defamation Act 2013, s.3). I publish this in the public interest to inform UK savers about costs, risk, and performance of widely‑marketed products (s.4). Alpesh Patel OBE www.campaignforamillion.com