Pension fund performance changes all the time, the problem is for the pension holder it is difficult to monitor.
After all when you made the original decision to take out your pension the charges may well have been the industry standard.
Changes to the pension schemes can occur either through changes in economy or by Government policy changes. This may well mean that the overall direction of your pension scheme may end up pointing in the wrong direction.
Pension fund performance is assessed by considering three main areas.
Pension Fund Performance – Attitude to risk
By looking at the pension holders attitude to risk and the potential rewards that come from that risk, the pension review can consider the existing pension holdings .
It uses and an asset allocation model that is personal and specific to the client.
Pension fund performance is assessed looking at how to keep risks as low as possible whilst getting the pension pot as big as possible.
Pension Fund Performance – Current values
The pension review then in its second phase considers current values for the pension or pensions looks at how the fund is performing what charges it incurs and predicts the entitlement it might achieve.
Pension Fund Performance – Amalgamation
The final phase is to wrap everything up into one plan based on what is available in the market at the time.
This sound straight forward, but in fact it needs careful consideration as every one has a different attitude to risk and each pension pot varies enourmoulsy in size.
Pension fund performance – Top 10 performing pensions
In the illustration below are listed the top ten performing pensions.
Skandia, Scottish Equitable and Legal and General do well, in the year to September 2013. So you might think that it’s a no brainer and we should all pile into the top three !
But look again which Skandia is best and is that as a result of a risky investment?
It is also worth considering hat the pension fund performance may have been achieved by investing in tobacco, or a designer clothing manufacturer who may be a little unscrupulous.
The number of us who desire pension fund performance with an ethical pension consideration has increased enormously in the past 10 years.
If you want to find out more you can get your pension reviewed by using the contact form below or text “PENSION” to 07525 354118