Global asset manager BlackRock has launched nine target date funds in a UCITS mutual fund wrapper, allowing more UK individual investors to save and invest for retirement within a Self-Invested Personal Pension (SIPP).
While over 12 million employed people are now auto-enrolled into workplace pension schemes, many still need more retirement savings.
According to research by the Pensions and Lifetime Savings Association (PLSA), almost a third of people in the UK do not expect to have any pension.
BlackRock's new target date funds are designed for those who do not have a workplace pension, such as the self-employed, and those looking to increase their retirement savings.
Each fund in the range is named after the approximate year an individual plans to retire and the underlying mix of investments shifting allocation through an individual's lifetime.
The funds will be made up of a combination of iShares ETFs and index funds, providing access to a diverse range of investments and adjusting their risk profiles to align with investors' retirement goals.
Dominic Byrne, head of retirement solutions strategy for Europe, Middle East and Africa at BlackRock, said: "A lack of sufficient retirement savings is one of the most pressing challenges facing the UK in the future, with rising living costs pushing a comfortable retirement further out of reach for many.
"This accessible, low-cost structure aims to allow people to take control of their pension by simply selecting the fund that is closest to their retirement year."
BlackRock's Retirement Solutions team will manage the funds, which will be available on various UK DIY investment platforms.