avc for the future?

madmollusc

Hello,

I've been looking through various posts and found them extremely useful and insightful but am still confused on the best place for my money, so I thought I would seek some opinions on my dilemma.
I invest £120 a month in a railway AVC scheme, BRASS, the funds (stocks & shares) haven't performed that well over the last 7 years (have less £ than I invested). When I retire (30 years from now) I can take a 25% lump sum out of my pension scheme. The company do not contribute or match any of my BRASS contributions.

So my questions are:

1.Should I stick with Brass AVC scheme?

2. If not, what do people suggest I invest in so that I can improve my pension in the future?

Thanks
MM

jonnyb1978

A late reply but i would stick with. I have recently joined the BRASS scheme and due to its conditions i think its a good idea to stay. Having monitored its performance (you say last 7 years). Only until recently Jan 2008 that BRASS investments have taken a nose dive, like most other investments so your not on your own in losing money. However with 3O years left (the same as me) investments will only rise again and with 30 years left i dont think you have much to fear. The condition of taking the BRASS as a tax free lump sum appeals as this will secure you normal yearly pension. Towards the end you can pump most of your wages into BRASS without paying tax, then take the lump sum (again tax free). A simple way to boost your pension in the latter years.
Keep in mind the funds its invested in. Ive got 25% in low risk and 75% in high risk. Each year in a few years time i want to transfer around 3/4% from the high to low so nearing retirement age, my money is mostly in low risk. Wont happen exactly like that but thats the main plan.

EdInvestor

madmollusc wrote: »

I invest £120 a month in a railway AVC scheme, BRASS, the funds (stocks & shares) haven't performed that well over the last 7 years (have less £ than I invested).

Is the underperformance over the whole period or just in the last couple of years?If the latter that has been the case across virtually all funds.If the former than you might look to move new money elsewhere.

jonnyb1978

Heres the performance of the last 6 years or so. BRASS i think now only have the top 3 funds available for new entrants so all depends on what funds you have your money in. Ive got 75% going into the global medium to high risk and as of May 2008 it had a near 88% growth over the previous 5 years. Looking at May 2009 the majority has lost money and like above post says, it will not only be BRASS but most investments to have also lost money. I would still be happy with a growth ranging from 18% to 33% in this current climate for the top 3 funds. Once the recession is over the funds will only rise again and will peak and trough a good few times before your 30 years is up. I'd stick with it.

Investment returns up to 1 May 2009

BRASS investment fund

Total return over 1 year
Average yearly return over last 5 years
Total return over 5 years

Pension Managed Fund

-10.6%
5.9%
33.2%

Pension Global Equity Fund

-23.6%
3.4%
18.2%

Pension Deposit Fund

3.8%
4.8%
26.3%

Pension Assured Fund (at age 55)

0.8%
2.5%
13.0%

Pension Assured Fund (at age 50)

-6.3%
0.8%
4.1%

Pension Assured Fund (at age 40)

-18.9%
-2.4%
-11.4%

Pension Assured Fund (at age 30)

-29.8%
-5.5%
-24.4%

Pension Equity Fund

-26.8%
1.1%
5.8%

Pension Overseas Equity Fund

-20.5%
3.1%
16.6%

Pension Property Fund

-29.6%
-0.8%
-3.8%

Pension Fixed Interest Fund

9.9%
5.9%
33.3%

Pension Index Linked Fund

-1.5%
5.5%
30.9%

Investment returns up to 1 May 2008

BRASS investment fund

Total return over 1 year
Average yearly return over last 5 years
Total return over 5 years

Pension Managed Fund

2.6%
11.7%
74.2%

Pension Global Equity Fund

-0.6%
13.4%
87.7%

Pension Deposit Fund

6.0%
4.7%
25.8%

Pension Assured Fund (at age 55)

2.4%
2.7%
14.1%

Pension Assured Fund (at age 50)

2.3%
2.5%
13.2%

Pension Assured Fund (at age 40)

2.0%
2.2%
11.7%

Pension Assured Fund (at age 30)

1.8%
2.0%
10.4%

Pension Equity Fund

-7.2%
12.0%
76.5%

Pension Overseas Equity Fund

0.1%
12.1%
77.2%

Pension Property Fund

-12.5%
8.6%
51.3%

Pension Fixed Interest Fund

6.4%
4.2%
23.0%

Pension Index Linked Fund

12.2%
7.1%
40.6%

Investment returns up to 1 May 2007

BRASS investment fund

Total return over 1 year
Average yearly return over last 5 years
Total return over 5 years

Pension Managed Fund

7.1%
7.7%
45.0%

Pension Global Equity Fund

8.0%
7.7%
n/a

Pension Deposit Fund

4.7%
4.3%
23.2%

Pension Assured Fund (at age 55)

2.7%
2.1%
11.7%

Pension Assured Fund (at age 50)

2.7%
2.1%
11.7%

Pension Assured Fund (at age 40)

2.7%
2.1%
11.7%

Pension Assured Fund (at age 30)

2.7%
2.1%
11.7%

Pension Equity Fund

10.3%
7.8%
45.9%

Pension Overseas Equity Fund

6.0%
7.3%
42.4%

Pension Property Fund

12.9%
13.7%
90.4%

Pension Fixed Interest Fund

1.4%
5.0%
27.6%

Pension Index Linked Fund

3.6%
6.5%
37.3%

Investment returns up to 1 May 2006

BRASS investment fund

Total return 1 year
Average yearly return over last 5 years
Total return over 5 years

Pension Managed Fund

26.2%
4.5%
24.5%

Pension Global Equity Fund

34.3%
n/a
n/a

Pension Deposit Fund

4.7%
4.2%
22.6%

Pension Assured Fund (at age 55)

3.0%
2.0%
10.5%

Pension Assured Fund (at age 50)

3.0%
2.0%
10.3%

Pension Assured Fund (at age 40)

2.9%
1.9%
9.9%

Pension Assured Fund (at age 30)

2.8%
1.9%
9.6%

Pension Equity Fund

30.3%
2.8%
14.6%

Pension Overseas Equity Fund

33.8%
3.0%
15.9%

Pension Property Fund

18.6%
12.4%
79.2%

Pension Fixed Interest Fund

3.9%
5.6%
31.5%

Pension Index Linked Fund

5.5%
7.0%
40.3%

Investment returns up to 1 May 2005

BRASS investment fund

Total return 1 year
Average yearly return over last 5 years
Total return over 5 years

Pension Managed Fund

7.3%
-0.3%
-1.4%

Pension Global Equity Fund

7.1%
n/a
n/a

Pension Deposit Fund

4.5%
4.5%
24.5%

Pension Assured Fund (at age 55)

1.8%
2.2%
11.5%

Pension Assured Fund (at age 50)

0.1%
1.6%
8.1%

Pension Assured Fund (at age 40)

-3.0%
0.5%
2.4%

Pension Assured Fund (at age 30)

-5.9%
-0.5%
-2.3%

Pension Equity Fund

8.2%
-3.2%
-15.0%

Pension Overseas Equity Fund

3.2%
-4.7%
-21.2%

Pension Property Fund

16.4%
10.3%
63.5%

Pension Fixed Interest Fund

8.1%
6.1%
34.2%

Pension Index Linked Fund

8.3%
5.2%
29.1%

Investment returns up to 1 May 2004

BRASS investment fund

Total return 1 year
Average yearly return over last 5 years
Total return over 5 years

Pension Managed Fund

16.9%
-0.8%
-4.1%

Pension Global Equity Fund

21.3%
n/a
n/a

Pension Deposit Fund

3.5%
4.6%
25.4%

Pension Assured Fund (at age 55)

1.2%
3.6%
19.5%

Pension Assured Fund (at age 50)

-4.8%
1.9%
9.9%

Pension Assured Fund (at age 40)

-15.6%
-1.3%
-6.1%

Pension Assured Fund (at age 30)

-25.1%
-4.1%
-18.9%

Pension Equity Fund

22.1%
-5.1%
-23.0%

Pension Overseas Equity Fund

20.8%
-1.5%
-7.2%

Pension Property Fund

10.7%
10.5%
64.6%

Pension Fixed Interest Fund

1.4%
4.5%
24.7%

Pension Index Linked Fund

5.7%
4.3%
23.7%

jonnyb1978

Oh sorry, that didnt come out as it should but hopefully you can get the gist of it.
The 3 figures in the list are:
Return over last year.
Average yearly return over 5 years
Return over 5 years.