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My AVIVA pension is £48,000 now and it is predicted to be 47,000 in 2038. It is invested in a fund, so the return of the fund is not sufficient to cover the fees and inflation?

04 February 2022

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Question by Yuriy

Hello, I have sent a question regarding my pension to a gentleman presenting from AVIVA. I sent it to Holly's email. My AVIVA pension is £48,000 now and it is predicted to be 47,000 in 2038. It is invested in a fund, so the return of the fund is not sufficient to cover the fees and inflation?

Thank you,

Yuriy


Answered by Matt Angell

Hi Yuriy,

If you are looking through your latest statement then this statement will be using various assumptions and will not be based on the actual fund performance.

Normally it will have a low, medium, and high rate and they will also have a certain rate of inflation too.

When looking at what your pension may be worth in 2038 it will most possible use the medium rate which can sometimes be very low with recent illustrations I have got from other providers showing a growth rate of 1.5%

Generally, Aviva is fairly low cost and if the pension is a current company pension or former one then I'm sure the costs are nice and low.

I wouldn't be too concerned by the illustration and just keep an eye on the pension going forward to make sure things are moving in the right direction, however you may see things go up and down depending on the fund you're invested in.

Hope the above helps

Thanks

Matt

Answered by

Matt Angell

Founder & Financial Planner

I am the founder of Creative Lifestyle Planning, an independent financial planning firm that works with many families across the UK. Matt specialises in helping families to answer those all important questions they have on their mind and helping many clients gain a clearer, simply understanding of when and how to they can retire.