Personal pension growth rates ?

shilts

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 .

Linton

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

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

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

shilts wrote: »

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 .

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.

westv

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

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

westv wrote: »

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.

Performance figures are normally after fees. Within a sipp though you'd have to deduct the platform charges.

TomSurrey

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.