Opinion: DC Default Review – after the storm?
After the thunderstorms of Q1 2020 when global equity markets fell by over 20%, Q2 has provided sunnier days. Overseas markets recovered most losses despite continued uncertainty about the pandemic, while UK equity returns - whilst positive in Q2 - were more subdued. Read here how:
- Pension pots of younger members rose on average by 15% over Q2, and for members closer to retirement the average Q2 return was over 9%
- Three year returns were around 5% pa for younger members and 4% pa for older members
- The rapid change in fortunes, reaffirms our advice in our previous paper for DC investors not to panic and to maintain a long term strategy