NOW! Pension - zero growth for 5 straight years

I had a small work place pension from 6 years ago which has got smaller year on year. Not one penny of growth has ever been registered against the account, only an annual deduction of charges and a 0.3% management fee..... it does not appear to be a pension at all only a 'we will hold on to your contributions and slowly erode them' any thoughts?
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  • Gavsta said:
    I had a small work place pension from 6 years ago which has got smaller year on year. Not one penny of growth has ever been registered against the account, only an annual deduction of charges and a 0.3% management fee..... it does not appear to be a pension at all only a 'we will hold on to your contributions and slowly erode them' any thoughts?
    Knowing how you chose to invest the funds within the pension might be of some use?
  • mebu60
    mebu60 Posts: 800
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    Letting us know who it is with and what it is invested in might be helpful.
  • What have you invested this pension in?

    Over the last 5 years, world stocks (e.g., https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation/charts ) have increased by about 60% while world bonds (e.g., https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-global-bond-index-accumulation/charts ) have indeed had a total return of 0% over 5 years (having had 3 years with positive returns and two with negative), so any investments with a significant portion of stocks should have shown an increase.






  • Albermarle
    Albermarle Posts: 21,085
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    In the title the OP says it is a NOW pension, which only offers one investment option.
    Up until 15 years before your retirement date your money is in the Diversified Growth Fund. This has grown 10% in the last 5 years.
    As you get closer to retirement it slowly changes to the Retirement Countdown fund. This has grown 5% in 5 years.
    OP it is not zero growth but it is not very exciting and I have seen other comments about its underperformance.
    On the other hand it could also be a lot worse. Some retirement funds have dropped 25% in the last two years.
  • xylophone
    xylophone Posts: 43,834
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    I had a small work place pension from 6 years ago 

    Had you considered a transfer to your current workplace pension (if you have one and if a transfer in would be possible)?

  • B0bbyEwing
    B0bbyEwing Posts: 1,176
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    In the title the OP says it is a NOW pension, which only offers one investment option.
    FINALLY! Someone who gets it (and not just talking about reading the thread title).

    The amount of times I've had to bang my head against a wall when discussing NOW Pensions where MSE members have insisted that I must surely have a choice in how it's invested.

    No, I don't!! I'd much rather prefer my employer have picked NEST or TPP for example, but alas the dart they threw to choose the provider landed on NOW for me.

     and I have seen other comments about its underperformance.
    Possibly me as I've grumbled about it a few times. I get the impression not many on here work for a company where the WPP is with NOW.

    I know you told the OP that there's been growth & I assume you've been on the site & pulled figures so you must be right but I'm afraid my experience is similar to the OPs. 
    I guess I must have had 10% growth if that's what you say it is but it most certainly doesn't seem like it - to the point I've actually contacted NOW and asked whether my employer is also contributing or not (yes, they are).

    Looking at family members with NEST & TPP and I see decent gains - especially the one who's with TPP, even through last year. These people also have the option to tweak how they're invested though (e.g. cautious, balanced, adventurous) whereas I'm stuck with how I'm told they'll handle my money.


    As you can probably tell, I'm not a fan of NOW. It's why anything I contribute beyond the 5% minimum goes in to my SIPP & not the WPP (employer will only pay the minimum & wouldn't even pay that if they didn't have to).
  • Hoenir
    Hoenir Posts: 1,187
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    edited 18 December 2023 at 10:44PM
    Been a challenging period for fixed interest investments. Though the tide in this regard has changed. The problem with an exciting growth portfolio is that market turnarounds can be sudden and savage. Catches the uninitiated off guard. Good investing is like watching paint dry. Not a day at the races. As it is often portrayed these days. 

    At least you are getting the benefit of employers contributions. Make sure you are maximising these. As this is all free money. 
  • dunstonh
    dunstonh Posts: 115,647
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    NOW has two funds and the merge between them as they apply lifestyling.

    Contrary to what the OP has said, the main fund has made money but suffered with defensive asset downsides as it had 25% in fixed interest securities. 




    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I would throw in the poor accessiblity of its website which unlike the PP site - does not show transactions - projected pension value in retirement. The zero choice of funds is also an issue - my PP from a previous employer allowed me to remain fully enrolled in a 100% equities and not be switched to a glide path - deliberate choice for me as my main pension is with the NHS and I'm content to allow for further growth of the PP.

    I only remian enrolled in the NOW scheme due to employer contributions - otherwise I would have long since left it.
  • Albermarle
    Albermarle Posts: 21,085
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    In a kind of defence of Now.
    Other providers give you a choice, but I think > 95% of customers stay in the default fund anyway, which is also usually a lifestyle type fund nowadays.
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