Pension growth 2.8% 17-18..

newbiesaver55

My Aviva policy has grown 2.8% from Mar to March 2017-2018. That doesn't sound like a lot...yet when I looked at I saw on Moneyfacts that this is way above average (0.5%) if I'm doing my sums correctly .. & so long as I'm looking at the correct metric?
->
http://moneyfacts.co.uk/news/pensions/2018-sees-dent-in-pension-fund-performance/

My S&S ISA did better than 2.8% but of course it isn't tax free.

MK62

It depends what it's invested in tbh - and what exactly moneyfacts means by "average pension fund"

NoMore

newbiesaver55 wrote: »

My S&S ISA did better than 2.8% but of course it isn't tax free.

What do you mean its not tax free ? You may have funded it from taxed income, but any gains you make are tax free.

bostonerimus

Without knowing how your Aviva policy is invested it's impossible to comment on it's growth. My self directed retirement fund grew 10.5% from Mar 2017 to Mar 2018, but is probably radically different from the Aviva pension.

lisyloo

You may have funded it from taxed income, but any gains you make are tax free.

When they money is drawn apart from the 25% tax free but, it's subject to income tax isn't it? So personal allowance per annnum will be tax free but the rest will be taxed at basic rate?

dunstonh

There was a drop in the markets late 2017/early 2018 which most recovered in the 18/19 tax year. So, a low return in the 17/18 tax year would not be unexpected.

My S&S ISA did better than 2.8% but of course it isn't tax free.

Assuming you mean not tax free in that you have paid income tax before making a contribution. However, whether it is an S&S ISA or a pension does not matter. You can hold the same investments in both. So, returns would be the same.

If there is a significant difference over exactly the same dates (and that is important) then chances are its down to risk differences more than anything else.

NoMore

lisyloo wrote: »

When they money is drawn apart from the 25% tax free but, it's subject to income tax isn't it? So personal allowance per annnum will be tax free but the rest will be taxed at basic rate?

I was referring to the OP's assertion about his ISA not his pension. Withdrawals from his ISA aren't classed as income and are fully tax free.