AVC returns?

BML

Is it possible to calculate what a reasonable return on £1,200.00 would be on an AVC left from 1993 until 2014?

The amount in hand was a trifle over £3,000.00. Historically would it have done any better elwhere?

dunstonh

There are just over 50,000 pension funds still in use (not including unit/trust/OEIC, ETF, ITs and direct holdings). The returns will range from dire to spectacular.

Historically would it have done any better elwhere?

As you can hold the same investments in an ISA, investment bond, unwrapped or pension, then its not so much a case that the tax wrapper matters but where you invest. The fact it was an AVC is largely irrelevant as the tax wrapper doesn't make anything. It just contains the investments and it is those that make the money.

PeacefulWaters

It's easily beaten inflation.

http://www.hl.co.uk/news/calculators/inflation-calculator

Pincher

I think a better question would be what would it be worth if you had put it in a savings account: the so called risk free rate. You did have to keep switching, though, to stop it getting 0.1%.

kidmugsy

BML wrote: »

Is it possible to calculate what a reasonable return on £1,200.00 would be on an AVC left from 1993 until 2014?

The amount in hand was a trifle over £3,000.00. Historically would it have done any better elwhere?

I calculate that you got a return of about 4.5% p.a. One obvious comparison (I suggest) is with RPI inflation over that period, an exercise I'll leave to you.

Did you have it invested in equities, or cash, or bonds, or what?