How do I check pension fund actual performance

fuglyjowls

Like the rest of us that get annual statements from our pension companies (in my case AXA) they always provide projected pension figures based on three levels of notional growth - 4%, 6% and 8%. Given the problems in the market over the last few years, how do I actually find out how my fund has been performing, as this might just be an indicator of future performance. If it's really rubbish it might well also make me look at the ISA option instead of pension.
Does anyone know how to do it?

Dithering_Dad

fuglyjowls wrote: »

Like the rest of us that get annual statements from our pension companies (in my case AXA) they always provide projected pension figures based on three levels of notional growth - 4%, 6% and 8%. Given the problems in the market over the last few years, how do I actually find out how my fund has been performing, as this might just be an indicator of future performance. If it's really rubbish it might well also make me look at the ISA option instead of pension.
Does anyone know how to do it?

I use this site: http://www.trustnet.com/pen/groups/?group=axa_sun_life to monitor my stakeholder (Legal & General) and my wife's stakeholder (Standard Life).

I've selected "pension funds" and "AXA Sun Life" to list the AXA sun life pension funds, but if yours aren't in these, there are two other AXA pension funds listed.

Once you get the hang of it, go to "Portfolio" and set up your individual portfolio to track your amounts.

Good luck!

p.s. S&S ISAs use exactly the same funds as pensions. If the AXA funds you can select from are poor, look at another provider with a better range or even a SIPP.

IMHO, ISAs are OK for retirement planning as a supplement to pensions, not as a replacement. They are means-tested for benefits and are a little too easy to access when emergencies occur. Plus you don't get the 20%/40% tax rebate that you get with a pension plan.

dunstonh

Given the problems in the market over the last few years,

What problems over the last few years?

If it's really rubbish it might well also make me look at the ISA option instead of pension.

The pension and ISA tax wrappers are virtually identical in what [conventional] investments are available within them. Changing the tax wrapper wont make any difference to your investment returns.

Paul_Herring

how do I actually find out how my fund has been performing

Look up the funds on your provider's website or on one of the general sites like iii.co.uk where you can put your portfolio in.

EdInvestor

Dithering_Dad wrote: »

Plus you don't get the 20%/40% tax rebate that you get with a pension plan.

Then again, you don't pay tax on the money when you take it out, as you do with a pension - where you can only get 25% of it out anyway, the rest is trapped.

Dithering_Dad

EdInvestor wrote: »

Then again, you don't pay tax on the money when you take it out, as you do with a pension - where you can only get 25% of it out anyway, the rest is trapped.

We've aready been through this ED :rolleyes: but I've copied my other post in here...

Depends how large your pension pot is.

If the current tax free thresholds are:

Age 65 - 74 : £9,030
75 and over : £9,180

Average state pension is: £6,250 per Yr (according to Prudential research).
£9,030 - 6250 = £2780

Also according to Pru research, the average pension pot at retirement is £40k, which they state gives £2k per year at current annuity rates.

Is it not clear that for the average person, saving in a traditional pension plan is much better than saving in an ISA? If the average pension pot is just £40k, then they will never have an annual pension amount that is greater than the tax threshold. Even if you had 50k in your pot you could remove the 25% tax free and take it back to 40k - which is back under the tax-free threshold.

I'm also wondering if a few people with massive pension plans are skewing the figures, which means that most 'ordinary' people have pension plans holding much less than 40k or 50k. I'm sure that if you went into the DFW board and asked the question, the majority would have far less.

Is it not then irresponsible to promote ISAs to everyone for retirement purposes, regardless of their circumstances (and I'm looking at you in particular EdInvestor), when the majority of MSE members will not require the tax free status of an ISA and could certainly do with the tax rebate from the government to help them save up even a £40k pension pot??

The other argument about "the rest being trapped" is meaningless. You pay into a pension to provide yourself with a nice retirement, not so that you can scrimp and save during retirement and then pass it on after your death to your Middleaged children.

p.s. Do you and your husband have just ISA savings for your retirement provision, or is this (again) just something you advise other people to do?