CHOOSING a pension that matches the investor's risk profile with the correct asset mix, is a central message of the 1996 Family Money /TIPS Ltd Personal Pension Survey.
The survey report emphasises the importance of seeking fee based independent advice before buying a pension, if only because the removal of initial commission can automatically add up to 0.75 per cent value annually to a fund.
The following table shows the impact every extra one per cent growth can have on the final maturity values of a pension fund into which £2,000 per annun has been invested.
Annualised Fund Value Fund Value Fund Value
Net Yield % 10 Years 20 Years 30 Years
8 ................ 31,290 98,840 244,690
9 ................ 33,120 111,530 297,150
10 ............... 35,060 125,000 361,880
11 ............... 37,120 142,530 441,820
12 ............... 39,310 181,400 540,580
13 ............... 41,630 182,940 662,630
14 ............... 44,090 207,540 813,470
15 ............... 46,700 235,620 999,910
16 ............... 49,460 267,680 1,230,320
NB: Net Yield is the return after all costs.
