Auto Enrolment – How has my investment performed?
Post Author:
Angie Harvey
Date Posted:
December 6, 2017
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The majority of businesses are now in the Auto Enrolment process and their employees are making contributions to the schemes. One of the questions that I am sure interested employees ask is, ‘How has the investment performed?’
At Johnston Smillie, we are not registered to give investment advice, but we have asked our colleagues at Now Pensions to give their feedback on the performance of their investments to date.
This is what they had to say:
“At NOW we only offer one unified investment strategy which are based on age, with the contributions going into safer environments as the member moves towards retirement. We do this to reduce the impact of any sudden market surprises that may jeopardise any retirement plans.”
“The NOW Pensions’ diversified growth plan was launched on 18 December 2012. Between then and 6 September 2017, the fund has delivered member returns of 46.8%. That translates into an annualised return of approximately 8.5% throughout almost 5 years. Those figures represent extremely good returns over the period but of course in a period of a strong market.”
These returns should not be relied upon over the whole period to retirement.
The change in the Pension rules in recent years is making pension contributions more attractive too and we are seeing a trend of more young people contributing additional contributions to their pensions, over and above the minimum. Additional contributions can assist with tax planning and can give more opportunity for the pension pots to grow.
At Johnston Smillie we have a dedicated payroll team who can assist your business in all aspects of Auto Enrolment. If you would like to find out more about our payroll services and how we can help you with your Auto Enrolment duties, please contact Julie Hunter
