Is your pension a dud? The big-name pension funds that are under performing
Written by Carl Turner on September 02, 2014.
During the course of our working lives, we contribute huge amounts of money over decades to build up a pension pot. Our future wellbeing and quality of life during retirement are dependent on these hard-earned savings. However, the amount we save is just one factor influencing how much we will have to live off once we stop working. Inflation and interest rates play their part but the most significant factor is the performance of the investments held in the pension.
It is astounding how many funds ran by some of the biggest pension providers in the UK are woefully underperforming and putting the retirement savings of millions of UK residents at risk. Worse still, savers are not being proactive and switching from these consistently underperforming funds.
Infinity’s chosen investment partner, Bestinvest, voted Wealth Manager of the Year in 2013, have decided to do something about it. They have produced a guide which could help you identify whether your own pension funds are underperforming. Their ‘Spot the Dog’ investment guide is based on rigorous research from a team of expert researchers and has been monitoring the investment industry for nearly two decades. They have recently shined the spotlight on pensions, producing a free,
pensions' edition which highlights 49 funds which have consistently underperformed. Between them these funds manage around £31 billion worth of assets. That is a huge amount of investor cash entrusted to funds that are not doing their job properly.
Many of the big name pension providers and funds feature on the list of ‘dogs funds’, including Scottish Widows, Standard Life, AXA and Aviva, who have funds which have consistently underperformed against the benchmark over a three year period, and some of the very worst funds, underperforming for ten years, are managed by big hitters such Prudential, Abbey and Zurich.
If your pension features in one of the dog funds, it is important to review your situation to see if it is likely to harm the ability of your pension to deliver the retirement you want. However, there are important considerations to take into account before making the important decision to transfer your pension. For this reason I am offering a free, no obligation, professional assessment to expats. If you would like to take advantage of this offer drop me an email or contact me at the linked social media accounts in my profile.