Should I stop paying pension contributions

dunstonh

thor wrote: »

Remember that 5% 7% and 9% are always given as examples but not neccessarily what you are going to get. In fact the stock market is lower than it was at the turn of the millenium so we would be talking about negative growth over the last decade.

5, 7 & 9% could also be understating the real returns as most balanced portfolios are well up over the decade. The FTSE100 is just one index and investing all your money in that is just asking for volatility and below par performance. Other stockmarkets have grown significantly. This is why diversification is always important.

Also, for those paying monthly, they have benefited from the periods when the markets dropped as they bought units cheaper. In the long run, it will be those units that make the most money.