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  • FIRST POST
    • NorthernGeezer
    • By NorthernGeezer 7th Aug 18, 8:42 AM
    • 139Posts
    • 20Thanks
    NorthernGeezer
    Investing in a Pension Past and the Future
    • #1
    • 7th Aug 18, 8:42 AM
    Investing in a Pension Past and the Future 7th Aug 18 at 8:42 AM
    I understand that we cant 2nd guess the future but we can look at past performance as a guide though.
    Assuming you invest 500 a month into a pension, and again assuming that the pension provider invests the money in a multi asset fund, what kind of percentage growth would you hope to obtain over a period of 20 years?
    In short, if you did this 20 years ago what would be in you pension pot now?
Page 1
    • BLB53
    • By BLB53 7th Aug 18, 8:54 AM
    • 1,346 Posts
    • 1,123 Thanks
    BLB53
    • #2
    • 7th Aug 18, 8:54 AM
    • #2
    • 7th Aug 18, 8:54 AM
    With uplift of 25% from HMRC that makes 625 pm or 7,500 pa then assume average growth of 7% p.a would give a total of 319,000 after 20 yrs.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • Dox
    • By Dox 7th Aug 18, 8:58 AM
    • 856 Posts
    • 639 Thanks
    Dox
    • #3
    • 7th Aug 18, 8:58 AM
    • #3
    • 7th Aug 18, 8:58 AM
    With uplift of 25% from HMRC that makes 625 pm or 7,500 pa then assume average growth of 7% p.a would give a total of 319,000 after 20 yrs.
    Originally posted by BLB53
    How about charges?
    • dunstonh
    • By dunstonh 7th Aug 18, 9:09 AM
    • 93,923 Posts
    • 61,706 Thanks
    dunstonh
    • #4
    • 7th Aug 18, 9:09 AM
    • #4
    • 7th Aug 18, 9:09 AM
    How much equity content? A multi-asset fund with 20% equity will be very different (in expectation) to a multi-asset fund with 80% equity.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • westv
    • By westv 7th Aug 18, 11:33 AM
    • 4,580 Posts
    • 2,171 Thanks
    westv
    • #5
    • 7th Aug 18, 11:33 AM
    • #5
    • 7th Aug 18, 11:33 AM
    I'd roughly estimate 5% a year + inflation - charges.
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