Friday 28 July 2017

Pension funds end 2016 higher, despite bumps

(Stock photo)
(Stock photo)
Charlie Weston

Charlie Weston

Pension funds performed well last year, despite gyrations on stock markets, record low bond yields and a dive in the value of sterling.

The average Irish-managed pension fund was up 7.6pc last year, according to the Aon Hewitt managed fund index.

Funds benefited from a 2.6pc rise in December after global equity markets strengthened at the tail end of the year.

Oil prices also rose.

This means that someone who invested €500 at the start of last year will have seen the fund value grow to €538 by the year's end.

The good returns for pension funds comes despite plans for some defined benefit schemes to be wound up.

Irish Brokers Association chief executive Ciaran Phelan said a typical pension saver putting in €100 last January would have received €42 back from the taxman and have also received growth of €7.60 on top of this.

Irish Independent

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