Aegon UK has unveiled plans to expand access to private markets within its Aegon LifePath workplace default strategy, extending the approach to more than 375,000 pension savers from summer 2026.

The move follows the integration of private markets into Aegon UK’s £14bn Universal Balanced Collection (UBC), announced last year, and will take the total number of members with access to private market investments across the two strategies to more than one million.

Under the changes, the £12bn Aegon LifePath strategy will invest across a broader range of asset classes, including diversified global private markets, protected equities and multi-asset credit.

Private market exposure will be delivered through three long-term asset funds (LTAFs) managed by Aegon Asset Management, BlackRock and J.P. Morgan Asset Management.

It aligns with the trustee boards’ ambition to allocate at least 10 per cent of default fund assets to private markets by 2030, with a minimum of 5 per cent invested in the UK, in line with their commitments as signatories to the Mansion House Accord.

Indeed, Aegon UK said the strategy will target a 20 per cent allocation to private markets during the growth phase, reducing to around 8 per cent at retirement.

The enhancements form part of Aegon UK’s wider roadmap to align its Universal Balanced Collection and Aegon LifePath portfolios under a common investment strategy, covering assets totalling around £26bn, with a focus on delivering value for money for members.

Aegon UK managing director for investment proposition, Lorna Blyth, explained that the firm was building on work first undertaken in 2024.

“Back in 2024, we created the blueprint for integrating private markets into existing workplace default funds.

“We are now taking the next step towards offering improved long-term growth potential and portfolio resilience for pension savers, while further aligning our £14bn Universal Balanced Collection and £12bn Aegon LifePath strategies," she continued.

“These innovative enhancements, combined with our proven ability to deliver the necessary breadth and pace required, position us as industry leaders in providing defined contribution (DC) pension savers access to investments that have previously been out of reach.

"Aegon is committed to ensuring consistency, scale and resilience across our default investment options,” added Blyth.

The trustees of the Aegon Master Trust also welcomed the extension of private markets into Aegon LifePath.

Aegon master trust trustee and chair of the investment committee, Graeme Griffiths, commented: “As the retirement landscape continues to evolve, our collaboration with Aegon UK has resulted in the creation of Aegon LifePath, a default fund that is both robust and adaptable.

“We believe the further changes to the fund - to include private market investments - offer the potential to deliver strong growth to our members over their working lives and beyond, and to provide improved resilience during volatile markets.”

Griffiths added that the changes would apply to all members invested in the default strategy, helping ensure the fund continues to meet the needs of a diverse membership base.

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