Pensions

[IceniSky]

I don't really know much about them and have only had one for 10 years. I am 40.

Looking at my online statement it says last financial year my investment only made 1% for medium risk. That seems very low or is it to be expected?

Private sector DC pension.

[BayeauxT]

Hi, is your pension invested in the default (automatic) investment strategy? These strategies can be quite conservative because your employer doesn’t want to be accused of gambling with your savings - so, not great returns but also not as volatile. Some DC schemes also give you the option to choose a different automatic strategy that offers more risk/more reward. Or you might be able to choose your own investment funds. Does your provider give you any info about investments? I had a similar thing with my employer’s new scheme - my money in the default investment hardly grew at all despite the stock market shooting up to highest level ever so I just chose a bunch of higher risk funds (being prepared for the fact that they could drop in value, but over 15-20 years they should do better than 1% return).