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    • mordac
    • By mordac 19th Nov 19, 1:50 PM
    • 5Posts
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    mordac
    Pension fund performance - real or nominal
    • #1
    • 19th Nov 19, 1:50 PM
    Pension fund performance - real or nominal 19th Nov 19 at 1:50 PM
    I've been checking the funds that make up my pension pots with Standard Life and Scottish Widows. I can find lots of info on services like Monrningstar, Trustnet etc. But none of the historical returns performance info says whether it is on a real (inflation adjusted) or nominal (including inflation) basis. What is the norm here?
Page 1
    • JoeCrystal
    • By JoeCrystal 19th Nov 19, 2:15 PM
    • 1,987 Posts
    • 1,411 Thanks
    JoeCrystal
    • #2
    • 19th Nov 19, 2:15 PM
    • #2
    • 19th Nov 19, 2:15 PM
    The norm is nominal.
    • gm0
    • By gm0 19th Nov 19, 3:10 PM
    • 55 Posts
    • 49 Thanks
    gm0
    • #3
    • 19th Nov 19, 3:10 PM
    Check fees assumptions carefully
    • #3
    • 19th Nov 19, 3:10 PM
    Also be careful with consideration of "fund performance" from fact sheets vs what you actually get in terms of unit prices and upon sale for drawdown. i.e. Impact of fees in your scheme. If the performance is presented "net of fees (and in year trading costs)" then this is not as helpful as it could be in the long term if the fees are different to what you actually pay.

    Some generic fund sheets differ from the pension scheme specific fees (which can be higher or lower). So it's not WYSIWYG. Unhelpfully this seems to flow through to "generic" fund reports distributed by the schemes themselves i.e. not customised to actual fees.

    It gives a sense of fund A v B but for people who like things to add up and be internally consistent - it is infuriating. Luckily - where unit prices are available you can at least find out "what has really happened to me" and how does that compare with the published "proxy" reports.
    • Albermarle
    • By Albermarle 19th Nov 19, 4:33 PM
    • 1,859 Posts
    • 1,197 Thanks
    Albermarle
    • #4
    • 19th Nov 19, 4:33 PM
    • #4
    • 19th Nov 19, 4:33 PM
    But none of the historical returns performance info says whether it is on a real (inflation adjusted) or nominal (including inflation) basis. What is the norm here?
    The actual fund performances will normally be shown without taking inflation into account .
    However the projections about what you can expect your total pot to produce as an annual income at retirement age , do take inflation into account.
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