Pension performance

YoungSaver20

dunstonh said:

I add a huge amount of my salary each year to pension (about 48 % with employer contributions) - so feel it should be performing better.

Don't take this the wrong way, as it's not meant as a criticism, but you are the weak link in its performance.   You turned yourself into an investment manager and managed to miss all the major growth areas whilst investing more heavily in the weaker areas.

You are not alone in doing this.  So, your takeaway from this is don't try to be an investment manager when you don't know what you are doing.    Look for the multi-asset funds or the global tracker that your pension fund offers and stick with that.  

I agree. Okay I’ll try a global equity fund and mixed asset found I’ve found (will need to try for a few years of course)

cloud_dog

You need an investment strategy that you understand and csn be comfortable with.  You can then select investments that deliver on the strategy.

Google Lars Kroijer "Investing Demystified" (Youtube, website, book).

Read Tim Hale's book "Smarter Investing".

leosayer

I second the Lars Kroijer approach - simple to understand and easy to implement. 

My holdings are as follows:

• An unhedged global equity index fund (Vanguard FTSE All-Cap Equity Index)
• A gilt index fund (iShares UK Gilt 0-5yr)

The split is currently 70%/30% because I am planning to retire next year.

This returned a 13.5% gain last year and is 2.4% up this year. I'm very happy with returns - a current average of 10% per year for the past 5 years. 

If you want to work out the actual return you have made (which is different for everyone) then use the XIRR formula on excel / google sheets.