Nest workplace pension poor investment?

DavidAC

BlackKnightMonty said:

Google “NEST quarterly investment report”

Sorry I can’t share the link because I’m new to the forum.

I looks good to me. Annualised returns of 2040 Retirement Date Fund after charges 8% in 1 year, 5.6% in 3 years, 5% in 5 years, 7.6% in 10 years. The thread creator said they had not seen their pot above contributions in 2 years. 

MakingUpGround said "I have a workplace pension with Nest and I too have not seen growth over the contributions.".

Neither tie up with the nest quarterly report or Trustnet NEST 2040 Retirement Pn Fund factsheet | Trustnet.

BlackKnightMonty

£10k @ 5% (NEST Default 5 yr annualised) compounded for 16 years (to 2040) = £21,828.75

£10k @ 12.8% (NEST Sharia 5 year annualised) compounded 16 years (to 2040) = £68,698.24

I appreciate this is demonstrating the power of compound interest. But even accounting for a couple of downturns in this period Sharia looks a better investment in my view.

I have just under £25k in my NEST Sharia - my is age 46.

DavidAC

BlackKnightMonty said:

£10k @ 5% (NEST Default 5 yr annualised) compounded for 16 years (to 2040) = £21,828.75

£10k @ 12.8% (NEST Sharia 5 year annualised) compounded 16 years (to 2040) = £68,698.24

I appreciate this is demonstrating the power of compound interest. But even accounting for a couple of downturns in this period Sharia looks a better investment in my view.

I have just under £25k in my NEST Sharia - my is age 46.

I know the Sharia has performed better, but it is higher risk. I am 58, so I don't have as long to ride out any big falls. My point was some comments suggest NEST 2040 (or some other date) has never given a positive return where their reports and Trustnet and FT all show it has and has done reasonably well in its sector. It makes me apprehensive to move my Aviva pension to it, which the charts show has not done as well as, and is more volatile than  NEST 2040.

I don't have much in NEST and have not had it that long, so I cannot tell from my NEST pension.

BlackKnightMonty

Now might not be the right time to go all in on the NEST Sharia - I totally get that.

I wish you well.

Albermarle

DavidAC said:

BlackKnightMonty said:

Google “NEST quarterly investment report”

Sorry I can’t share the link because I’m new to the forum.

I looks good to me. Annualised returns of 2040 Retirement Date Fund after charges 8% in 1 year, 5.6% in 3 years, 5% in 5 years, 7.6% in 10 years. The thread creator said they had not seen their pot above contributions in 2 years. 

MakingUpGround said "I have a workplace pension with Nest and I too have not seen growth over the contributions.".

Neither tie up with the nest quarterly report or Trustnet NEST 2040 Retirement Pn Fund factsheet | Trustnet.

We see quite often that posters are not always looking at the right figures when looking at performance. The problem is usually timing. For example the 'last 12 months' can give a very different result to 'last year'
Also many data sheets are out of date and only change each quarter.