Pension gains 'modest' in 2007

New research has shown that 2007 saw the lowest pension fund returns in five years, proving disappointing for most savers.

The study, conducted by Investment Life & Pensions Moneyfacts, has shown a slowdown after strong returns in recent years, with the only those investing overseas reaping big benefits.

Richard Eagling, editor of Investment Life & Pensions Moneyfacts, commented: "Most pension holders will have seen only modest gains to their policies during 2007. Only those pension savers who hold more aggressive funds investing in the far east and global emerging markets will look back at the last twelve months with any real sense of achievement."

Figures show that the average pensions fund achieved growth of 5.41 per cent in 2007 whereas average growth in 2006 had been 9.17 per cent, making returns in 2007 their lowest since 2002.

In related news, Moneyfacts recently reported some good news for borrowers as rates on personal loans begin to fall.

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