Pension Performance

Pension Performance

Many people suffer from poor pension performance, do they not realise than an additional 1% of performance growth or additional income per annum could increase their pension by a significant amount. hasn’t anyone explained how pensions work …..

I made the point that if George Osborne really wanted to introduce pension freedom then perhaps he should have introduced proper reform of the pension companies first to ensure that they are prevented from holding their clients to ransom with poor and outdated fund choices.

In addition, perhaps he should also encourage the pension companies to be far more open, honest and transparent with their policyholders. The pension companies tend to produce a confusing array of paper that leaves most clients a little dazed and perplexed. Something for the regulator to consider surely?

In order to demonstrate the effect of poor past performance, have a look at the graph below. Looking at it I think that you will agree that it would be sensible for someone to choose the blue line of performance (given a free choice).

However from some clients’ point of view the physical gap is not that big, so maybe it is not such a big deal. Of course 53.09% is better than 37.57% but does it make much difference financially?



Although our suggested re-arrangement of funds in the graph would have provided additional growth of 17.52% over five years!

However we have estimated that this client’s pension fund would have been £122,000 larger had he been advised on better fund choices 20 years ago.

So where would you like to spend your retirement Bracknell or the Bahamas?

In our opinion, most clients will only obtain REAL pension freedom by seeking an ongoing relationship with a capable and experienced financial adviser who has access to sophisticated investment planning software.

To contact UnaVida for a pension review – click here

Registered in England and Wales. Registered Number 5553273.
Registered Address: 8f Millars Brook, Molly Millars Lane, Wokingham, Berkshire, RG41 2AD.

A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

UnaVida Wealth Management Ltd. is directly authorised and regulated by the Financial Conduct Authority (440577).

The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.