Pension performance

dont_use_vistaprint

I started this Aegon pension 3 years ago
Total contributions:£27.6K
Current Value: £29.6k

So its grown £2k which is 7.2% or 2.4% per year - is that right? It seems really bad when 1 year savings accounts are paying 3-5% and instant access is 1.5% p.a while this is locked away for years.

I have had full HR tax and NI relief as well, and I haven't had the whole amount in from the start. It started around £500 a month then gradually went up to £850 and in March I added £6k lump sum.

So how do I add that in to calculate its true performance against say putting some of the money into savings going forward to get a true picture of how good it is ?

dunstonh

So its grown £2k which is 7.2% or 2.4% per year - is that right?

You have the figures. We don't. So, only you can say whether it is right or not.

It seems really bad when 1 year savings accounts are paying 3-5% and instant access is 1.5% p.a while this is locked away for years.

Why does it seem bad?
And why are you comparing one year fixed term deposits with risk based investments where you need to average good years, bad years and nothing years. Typically over a period of 10 or so years.

So how do I add that in to calculate its true performance against say putting some of the money into savings going forward to get a true picture of how good it is ?

Look at the fund factsheets of the funds you hold. And stop looking at single years in isolation.

kinger101

You figures are completely incorrect. You can't expect three years of growth on the cash that has been invested since March 2019.

There's plenty of information online about the performance of individual funds - e.g. Trustnet.

LHW99

You could calculate a "unit price" for the investment(s) you have, and use that going forward to watch how it changes, and decide how many "new units" you are effectively purchasing with each payment in. The change in this "unit price" would give a more realistic guide of the performance.

AnotherJoe

What fund(s) is it invested in?

MK62

dont_use_vistaprint wrote: »

I started this Aegon pension 3 years ago
Total contributions:£27.6K
Current Value: £29.6k

So its grown £2k which is 7.2% or 2.4% per year - is that right? It seems really bad when 1 year savings accounts are paying 3-5% and instant access is 1.5% p.a while this is locked away for years.

I have had full HR tax and NI relief as well, and I haven't had the whole amount in from the start. It started around £500 a month then gradually went up to £850 and in March I added £6k lump sum.

So how do I add that in to calculate its true performance against say putting some of the money into savings going forward to get a true picture of how good it is ?

You'd also need to adjust for the fact that if you had put the money in savings accounts, a lot less than £27.6k would have been put in......there is no tax or NI relief on savings - you'd have paid that to HMRC instead.

Hard to give an exact figure, as it depends on exact dates and amounts etc......but if you assume you had never joined this scheme, and simply paid an equivalent into one or more savings accounts (equivalent being so that you ended up with the same net pay after contributions to either pension or savings), then you'd probably be sitting on somewhere in the region of around £16-17000.......a long way short of the £29600 in your pension.......
Fair enough, any income from the pension would be taxable, whereas income taken from savings would not, but that's the other side of the debate.....

dont_use_vistaprint

AnotherJoe wrote: »

What fund(s) is it invested in?

Its just called DEFAULT GROUP PEN

JoeCrystal

dont_use_vistaprint wrote: »

Its just called DEFAULT GROUP PEN

Here is the factsheet for it. GPP Default Pn PDF Factsheet It doesn't look too bad actually.

Thrugelmir

dont_use_vistaprint wrote: »

It seems really bad when 1 year savings accounts are paying 3-5% ?

Are your referring to regular monthly savers?

AnotherJoe

JoeCrystal wrote: »

Here is the factsheet for it. GPP Default Pn PDF Factsheet It doesn't look too bad actually.

I see It's a "lifestyle" so will need looking at later as performance will start to decline approaching retirement however that can be dealt with later