2016 saw the highest pension fund returns since 2009

2016 saw the highest pension fund returns since 2009

14:01 PM, 24th January 2017, About 5 years ago 3

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New data from the upcoming Moneyfacts Personal Pension and Annuity Trends Treasury Report has revealed that last year pension funds enjoyed their highest returns since 2009.Treasury

Despite considerable economic and political uncertainty during 2016, the average pension fund finished the year up by 15.7%. This is the fifth consecutive year of positive pension fund growth and will be welcome news not only to those saving into a defined contribution pension scheme, but also the growing number of retirees who remain invested in pension funds by opting for income drawdown.

Of all the pension funds surveyed, the vast majority (94%) delivered positive growth during 2016. In terms of the leading ABI pension fund sectors, Commodity/Energy (70.9%), Global Emerging Markets (32.4%) and North America Equities (31.2%) led the way.

Table 1: Average annual pension fund returns (Source: Moneyfacts Personal Pension and Annuity Trends Report/Lipper)

Calendar year Pension fund growth
2016 15.70%
2015 2.60%
2014 5.80%
2013 13.90%
2012 10.80%
2011 -4.60%
2010 13.80%
2009 22.30%


Richard Eagling, Head of Pensions and Investments at Moneyfacts, said “Defined contribution pension schemes and income drawdown are in the spotlight like never before. The record numbers saving into defined contribution pension schemes and using income drawdown have placed even greater importance on the ability of funds to deliver strong performance if individuals are to have any chance of generating a reasonable retirement income.

“For all the economic and political uncertainty that 2016 brought, it will be remembered as a productive year for the performance of most pension and drawdown funds.”


Neil Patterson View Profile

16:20 PM, 24th January 2017, About 5 years ago

Volatile growth, but the average is still 10.04%

Mick Roberts

8:44 AM, 25th January 2017, About 5 years ago

Add in the Tax relief if you can get it, & if you aren't far away from being able to take your 25% Tax free, then there's a massive return.
One could say Much more return than putting in property at the moment.

Donald Tramp

9:15 AM, 28th January 2017, About 5 years ago

Most of this "growth" has come due to the drop in value of our pound due to Brexit. Companies do a lot of their earning overseas in other currencies so this has skewed the returns and pushed stock markets higher.

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