What to do with underperforming(?) work pension pots

[kingston12]

So the season has begun where my previous work pension statements come in and I decide that I definitely must do something with them, before losing interest and leaving them where they are for another year...

The latest one to come in has shown a 3.5% return from April 2017 to April 2018. Is that actually that bad compared to the market? Some of my others have done a bit better over the same period, but not really sure what I should be expecting as a benchmark.

[HarryW]

kingston12 said:

So the season has begun where my previous work pension statements come in and I decide that I definitely must do something with them, before losing interest and leaving them where they are for another year...

The latest one to come in has shown a 3.5% return from April 2017 to April 2018. Is that actually that bad compared to the market? Some of my others have done a bit better over the same period, but not really sure what I should be expecting as a benchmark.

Count yourself lucky it hasn't been invested in the Standard Life's GARS fund as a lot of company schemes are in, you could put a minus in front of that figure. It's so bad it could be the next mis- selling thing.

[Ginge R]

kingston12 said:

So the season has begun where my previous work pension statements come in and I decide that I definitely must do something with them, before losing interest and leaving them where they are for another year...

The latest one to come in has shown a 3.5% return from April 2017 to April 2018. Is that actually that bad compared to the market? Some of my others have done a bit better over the same period, but not really sure what I should be expecting as a benchmark.

All depends. If that particular fund is predicted to make lower returns anyway, the question might be, how has it performed against its specific peers. On the other hand, the fund might be superbly run, but simply temporarily out of favour with market sentiment. There’s no point in chasing stratospheric returns if, a) you don’t need or want to, or b) your portfolio is outside your capacity for risk/loss. That final point can also work both ways ie; too little of too much exposure to risk.

[dickdutch]

3.5% is fairly standard for a low risk fund.

[kingston12]

Thanks all. I guess I need to start looking at it in a bit more detail, but good to know that 3.5% isn't too far out of whack.

Another statement came in over the weekend showing a much more impressive 8%. Typcially I've got a much smaller amount invested in that one!

[xeny]

kingston12 said:

Thanks all. I guess I need to start looking at it in a bit more detail, but good to know that 3.5% isn't too far out of whack.

Another statement came in over the weekend showing a much more impressive 8%. Typcially I've got a much smaller amount invested in that one!

You need to look at what kind of assets the two pots are invested in, and even more importantly consider what kind of asset is the "right" choice given the rest of your circumstances.