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    • shilts
    • By shilts 13th Jul 17, 9:50 PM
    • 36Posts
    • 1Thanks
    shilts
    Personal pension growth rates ?
    • #1
    • 13th Jul 17, 9:50 PM
    Personal pension growth rates ? 13th Jul 17 at 9:50 PM
    Over the last 4 years my personal pension which I haven't been paying into for some years has been growing at around about 7% per year . Can anyone please tell me whether this a reasonable return , thanks .
Page 1
    • Linton
    • By Linton 13th Jul 17, 10:00 PM
    • 8,195 Posts
    • 8,053 Thanks
    Linton
    • #2
    • 13th Jul 17, 10:00 PM
    • #2
    • 13th Jul 17, 10:00 PM
    Last year a globally diversified 100% equity fund could have risen by more than 20%, perhaps nearer 30%, mainly due to the fall in the value of the £. Over the past 4 years an average of 12%/year is quite possible. But I cant tell whether your 7% is a reasonable return as I dont know how it is invested. Perhaps you are invested more cautiously with a significant % of bonds.
    • Dazed and confused
    • By Dazed and confused 13th Jul 17, 10:01 PM
    • 1,696 Posts
    • 737 Thanks
    Dazed and confused
    • #3
    • 13th Jul 17, 10:01 PM
    • #3
    • 13th Jul 17, 10:01 PM
    More reasonable than the 1.5% I've been getting from my bank.

    But someone will no doubt come along shortly who's got 20%+ from a good performing fund.

    What's reasonable is all in the eye of the beholder.
    • ukjoel
    • By ukjoel 13th Jul 17, 10:04 PM
    • 1,384 Posts
    • 1,250 Thanks
    ukjoel
    • #4
    • 13th Jul 17, 10:04 PM
    • #4
    • 13th Jul 17, 10:04 PM
    Yes it is.

    However your second questions should then be what level of risk is it being invested in?

    The rate of return on its own only tells half a story.

    I might get a 2000% return on an each way investment with Ladbrokes but there is a high degree of risk involved.
    • bostonerimus
    • By bostonerimus 14th Jul 17, 4:30 PM
    • 860 Posts
    • 434 Thanks
    bostonerimus
    • #5
    • 14th Jul 17, 4:30 PM
    • #5
    • 14th Jul 17, 4:30 PM
    Over the last 4 years my personal pension which I haven't been paying into for some years has been growing at around about 7% per year . Can anyone please tell me whether this a reasonable return , thanks .
    Originally posted by shilts
    Do you know how your pension is invested and the fees you are paying. You should know those things immediately......any comment about returns is meaningless without that information.
    Misanthrope in search of similar for mutual loathing
    • westv
    • By westv 14th Jul 17, 5:24 PM
    • 4,288 Posts
    • 1,858 Thanks
    westv
    • #6
    • 14th Jul 17, 5:24 PM
    • #6
    • 14th Jul 17, 5:24 PM
    Trustnet tells me one of my funds grew by 15% a year over the last five years and the other by 10% - both before fees.
    • Alice Holt
    • By Alice Holt 14th Jul 17, 5:50 PM
    • 1,370 Posts
    • 1,488 Thanks
    Alice Holt
    • #7
    • 14th Jul 17, 5:50 PM
    • #7
    • 14th Jul 17, 5:50 PM
    Trustnet gives me the following growth rates for my SIPP (5 funds & IT's)
    1 year - 29.2%,
    3 years - 17.2% annualised performance,
    5 years - 16.9% annualised performance.

    But as others have said - that's only half the story. It all depends on context / risk levels / etc.
    • bigadaj
    • By bigadaj 14th Jul 17, 6:57 PM
    • 9,939 Posts
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    bigadaj
    • #8
    • 14th Jul 17, 6:57 PM
    • #8
    • 14th Jul 17, 6:57 PM
    Trustnet tells me one of my funds grew by 15% a year over the last five years and the other by 10% - both before fees.
    Originally posted by westv
    Performance figures are normally after fees. Within a sipp though you'd have to deduct the platform charges.
    • TomSurrey
    • By TomSurrey 15th Jul 17, 12:01 PM
    • 20 Posts
    • 16 Thanks
    TomSurrey
    • #9
    • 15th Jul 17, 12:01 PM
    • #9
    • 15th Jul 17, 12:01 PM
    to answer the original question that rate of return would seem fairly poor over that period, do you have a very large bond allocation within your portfolio / investments? 7% is a solid long term rate or return but over the past 3-4 years is poor, for the reasons given above.
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