The average UK pension fund return was 8.8 per cent in 2006 marking the fourth consecutive year of positive returns.
Over the past four years, pension funds have achieved an estimated weighted average return of 13.4 per cent a year, 12.5 per cent over the past three years and 7.6 per cent over five years, according to Mellon Analytical Solutions.
Over 10 years, pension funds have returned 7.6 per cent a year compared with the retail price index at 2.7 per cent a year and earnings’ inflation of 4.2 per cent a year.
MAS used a sample of 507 pension funds with a combined value of £200bn.
Publications and statistics manager Daniel Hall says: “Pension funds are now moving forward following the damaging losses of the early years of the century.”