query over pension growth

ALYMAC76

i have 9 years final salary from my last employer and with my new employer have around 1.5 years contributing 13% per month of my salary which is 5% my money and 8% the company i work with.

Pension is with axa and i have joined their site so can see on a daily basis what the unit rate is.

My question. Is the only growth my pension will see is the number of units i have? ie do you get any interest on an annual basis? Just trying to work out if what i have is enough.

Retired_I.F.A.

You have a money purchase scheme , final salary ones are entirely different.
Units are bought with the contributions and it is their value that alters not their number.

Debt_Free_Chick

ALYMAC76 wrote: »

My question. Is the only growth my pension will see is the number of units i have? ie do you get any interest on an annual basis? Just trying to work out if what i have is enough.

I guess it depends on what you mean by "growth".

Generally, it means the increase in the unit price, between the day you bought those units and "today".

New units are an "increase in your investment" rather than growth. Think of it this way, if you didn't buy any new units, would you expect the value of your existing units to grow? I think the answer is "yes".

So .... you need to look at the units bought on a certain date. Look at the price you paid for them ... and then look at the price today. The difference is the "growth" ... or if you're unlucky, the loss!

dunstonh

Pension funds are always acculumlation units (ignoring old fashioned capital units and more modern pensions that use unit trusts and can use income units). The unit price on accumulation units takes into account any income generated within the investments.