Check your pension fund now — it could be losing you money

Some schemes with high fees have lower returns than simple, cheap trackers. It may be time to take back control, says David Brenchley

More than 90 per cent of equity pension funds are underperforming
More than 90 per cent of equity pension funds are underperforming
The Times

Nine out of every ten pension funds investing in UK stocks have failed to beat the overall return of the stock market over the past decade.

The investment platform AJ Bell said that 189 of the 208 UK equity pension funds had a lower return over the past ten years than the iShares UK Equity Index, a tracker fund that aims to replicate the holdings and performance of the biggest 565 UK-listed firms. That’s 91 per cent of funds underperforming. About 72 per cent of the funds performed more than 10 per cent worse than the tracker fund.

The iShares UK Equity Index fund, which has a 0.05 per cent annual fee, has gained 73.7 per cent over ten years, according to the research firm