Pension investment return over 28 years?

Tight_Fart

I started a private pension in May 1992 and I wonder if any of the pension guys on here could guess what they think my fund should have grown to?
I have paid in £125 gross per month ever since it matures in Jan 2020, (4 months).

I have a current transfer value and are just trying to gauge if it has grown as would have been hoped over the last 28 years.

eskbanker

Perhaps you'll find someone able and willing to play that game by making random uninformed guesses about the length of that piece of string, but realistically nobody could possibly offer any meaningful opinion without more detail about what it has actually been invested in and (to a lesser extent) with whom the product has been held....

Audaxer

Tight_Fart wrote: »

I started a private pension in May 1992 and I wonder if any of the pension guys on here could guess what they think my fund should have grown to?
I have paid in £125 gross per month ever since it matures in Jan 2020, (4 months).

I have a current transfer value and are just trying to gauge if it has grown as would have been hoped over the last 28 years.

It would depend what it was invested in and whether it was a cautious or adventurous portfolio, and the level of fees, so difficult to guess. The important thing is if you are happy with the current value.

When you say you have a current transfer value, that usually refers to a Defined Benefit pension, but as you are talking about growth I think you must have a Defined Contribution pension, so when you say transfer value, I assume you just mean the current value of investments in the pension?

MallyGirl

it will totally depend on what it was invested in - if you chose low risk it would be very different to if you chose high risk. If you didn't choose at all then the default fund could be set anyhow - probably at a middling level but it might be age related.
How long is a piece of string?

Anonymous101

Interesting conversation but as others have said its not possible to be accurate at all. Would totally depend on what you were invested during that time and what fee's were associated with your investment and platform.


I'll play the game but please don't be thinking this is anything more than a really rough stab in the dark...
£125pm = £1,500 per year so £42,000 total contribution.
Growth I'd say between 4% and 7% annually which would result in a pot of between £75k and £120k now.


That's if you've opted for a fairly heavy equities weighting in a reasonable buoyant markets (not japan for example) but also not hit any home runs by investing in China say 15 years ago.

midlandsimon

Impossible to even try to predict or estimate based on your portfolio risk (equites/bonds/alternative strategies).


At the end of the day, you are where you are with your current pension value. What decisions you make going forward can influence the ongoing value.

BoGoF

Question I would be asking is why didn't you increase your monthly payment at least in line with inflation?

Sea_Shell

Spreadsheet time!!!

Table with annual contributions with an "adjustable" growth figure, extrapolated for X years.

Play with the growth figure to give various possible "outcomes" and then compare with your latest statement.

Then either laugh or cry!!

Paul_Herring

Tight_Fart wrote: »

I started a private pension in May 1992 and I wonder if any of the pension guys on here could guess what they think my fund should have grown to?
I have paid in £125 gross per month ever since it matures in Jan 2020, (4 months).

It pick up something not mentioned thus far...

£125 per month from May '92 to Jan '20 (where it should be at least £256 if you were at least keeping up with inflation)?

Interesting, though seemingly unrealistic, thought experiment.

Tight_Fart

BoGoF wrote: »

Question I would be asking is why didn't you increase your monthly payment at least in line with inflation?

I would have lost my GAR.

I’m not asking because I haven’t enough to retire, but I would like to know advisers expectations.

bostonerimus

The average annual rate of return of my DC pensions from early 1990s until today has been 8.5%. Of course your rate of return will depend on your specific portfolio, the fees charged and how the portfolio was managed.