What's the average growth of a pension fund this year?

04 February 2022

Question by Jo

What's the average growth of a pension fund this year or in other words, should I be pleased with 5% I have got for this last 12 months? I am 53 years old and have pension managed by my IFA.


Answered by Boring Money

Hi Jo,

Thanks for the question.

The answer largely is dependent upon the type of investments you hold, typically over the longer term, a higher proportion of equities will generate higher returns but will be more volatile. Larger cash/bonds/gilt holdings will be less volatile, but will usually deliver lower returns in comparison.

Usually, the blend of both will be in your portfolio and if your IFA has advised you on these funds, it will likely be in accordance with your risk, capacity for loss and appropriate for your future goals.

It would also be worthwhile considering if your 5% return has come before or after fees have been deducted.

I would also like to add that investments should be viewed over the longer term, for example over a 10 year period, or more.

I hope if you approached your IFA, they would be welcoming enough to provide an answer in the context of your retirement plan, to help you further.

Answered by

Boring Money