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Pension plan performance - year on year...is this a good performance?

Icterinewarbler
Posts: 12 Forumite

Below lists the increase of a pension plan (of my fund transfer value) in recent years for my pension started in 1989. I'm looking for views, from those with a better knowledge of general pension performance, as to whether the below seems to be low, medium or high performance compared to other plans/providers? I'm trying to decide if a transfer to another provider is a good idea. This plan has 8 yrs to go until it reaches the agreed retirement date at the time it was started.
2006: | 17.89% |
2007: | 7.01% |
2008: | 12.82% |
2009: | -1.93% |
2010: | -0.39% |
2011: | 6.73% |
2013: | 14.06% (2 years gain) |
2014: | 5.28% |
2015: | 7.90% |
2016: | 7.80% |
2017: | 2.38% |
2018: | 17.54% |
2019: | 0.28% |
2020: | 5.47% |
2021: | 6.15% |
2022: | 12.05% |
2023: | 1.43% |
2024: | 4.03% |
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Comments
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That's quite interesting performance particularly 2018 and 2022 which were negative years for any typical equity/bond fund. The lowest performance in one year was -1.93% in 2009 when global equity markets were up over 15%.
Are these years calendar years or something else eg. May to May? If something else then they will be hard to compare.
Compare to Vanguard Lifestrategy linked below:
https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-60-equity-fund-accumulation-shares/price-performance
You'll get a more informed opinion if you share the name of the fund and provider.
Shifting providers in intself won't necessarily give you a better outcome. Maybe your existing provider has more appropriate products for you.
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It's a With-Profits Prudential Personal Pension0
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As mentioned if you switch providers, what will matter is what funds you invest in with that provider, not so much the provider themselves.
With Profits funds are a bit old fashioned and are designed to smooth out the gyrations in the markets. So in good years they retain profits to use in the bad years. So overall long term growth will tend to be on the weaker side, but you get less sleepless nights if markets are crashing, if you are the nervous type.
You can certainly switch to racier investments, probably within the Pru pension itself , but it will be a bumpier ride.
However you may still wish to move from the Pru. Not for better investment performance but because their customer service has a poor reputation, and when you come to want to start withdrawing from the pension, they have a one off charge of 3%.1 -
Are those calendar years? They dont appear to tie up with calender year expectations.I'm looking for views, from those with a better knowledge of general pension performance, as to whether the below seems to be low, medium or high performance compared to other plans/providers?30,000 or so different investments are available covering a wide risk range. Performance of most investments will be in the ballpark of their risk level. Your returns are generally low but reflect the lower risk you have.
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.0 -
Those are the year of each statement date, and the percentage increase in transfer value from the previous year's statement date (always around mid-April).0
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Do you understand if the plan moves you into ‘lifestyle’ (lower risk) investments in the final years before retirement. And if so is that what you want?Fashion on the Ration
2024 - 43/66 coupons used, carry forward 23
2025 - 60.5/890 -
The first figure represents the increase since April 2005. So the entire period is 19 years (Apr 2005-Apr 2024).You've averaged 6.5%pa return over the period. As a reference point, you've beaten inflation (CPI) which averaged 2.9%pa over the period.0
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..looks pretty good to me....a damn sight better than mine!!!
.."It's everybody's fault but mine...."0 -
OP you missed 2012 so I've used 18 years to average the gain so you have an annual average gain of 6.9%. How good or bad that is will depend on your asset allocation. But it's perfectly respectable for a 60/40 portfolio since 2005/6 and anyone who has that sort of gain in their pension investments is on track to succeed, as long as they are contributing enough.And so we beat on, boats against the current, borne back ceaselessly into the past.2
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That looks very reasonable my pot stated June 21 started well then dipped but is picking up now
can I ask you your rough value of your pot now0
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