Default Fund Downsides
November 24th, 2015
Millions of employees could be missing the opportunity to triple the size of their pension funds, says the Financial Times. Experts report that the ‘default’ funds offered by the largest company pension funds have performed poorly and that choosing better funds could add 6% a year to the returns. That may not sound important, but for someone in their 30s who is contributing 8% of a £30,000 salary to their scheme, an extra return of 6% a year could result in having a pension pot at 65 of £715,000 instead of £185,000.