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Warning for savers to check their pension funds

Warning for savers to check their pension funds

Category: Pensions

Updated: 21/10/2013
First Published: 21/10/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Those paying into a pension fund need to check the performance of their investments as a large number of them consistently underachieve, a leading broker has warned.

Bestinvest's Spot the Dog Pensions Edition has identified 113 pension funds that have continually performed well below their targets over the last three years, and in some cases have produced negative returns of as much as 25%.

This can have a serious impact on the value of your pension at retirement, and with well-known names including the likes of Prudential, Friends Life and Scottish Widows making the list of so-called "dog" funds it's important for savers to check they're not being short-changed.

Bestinvest is urging savers to act and switch to better-performing investments.

David Smith, of Bestinvest, said: "For many, pensions are shrouded in mystery. Plans are rarely reviewed and even forgotten about. [But] the performance of your pension funds really does matter as the price of tolerating poor performance will be a worse lifestyle in retirement.

"With people living longer, their pension savings need to work much harder for them to ensure they have sufficient resources to see them through their retirement years."


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