Your 2023 Pension Investments: A Year in Review

Carina Chambers | 14/12/2023



What happened to your pension investments in 2023 and what can you do in 2024 for a brighter financial future?

What happened to pensions in 2023?

As we come to the end of 2023 and welcome in 2024, we’re taking a look back at what’s been a mixed year for investments and pensions. But a new year could bring new financial possibilities! Kickstart your pension and empower yourself to make 2024 the year of potential financial growth. Why not combine old pensions or start or increase regular pension contributions? We can even play detective and help you Find, Check & Transfer any pensions you may have lost track of. And, of course, our expert Pension Advisers are here to help you every step of the way. 

Key things that affected your investments

This year has been a mixed bag for investments. Most regions have seen positive returns in equities with developed markets, mainly the US, doing better than emerging markets. Corporate bond returns have been lower, but remain positive for the UK. However, government bonds have continued their downward trend from the previous year. These falls in the UK government bond market haven’t been seen before and can be linked to very aggressive interest rate hikes to combat high inflation. 

Inflation set to linger

Inflation has been halved this year and while it is expected to linger for quite a bit longer, the new economic landscape could bring new opportunities. For example, the higher yields that have hurt bond prices also now mean bonds bring higher income returns than before. Despite the market's ups and downs, the Profile Pension portfolios have achieved good positive returns year-to-date. 

The importance of a long term view

And it’s always good to remember, pension investments are long term investments, so we also need to take a long term view when looking at performance. We shouldn’t aim to make short term bets or to try and outperform the market or dodge every market crash, but to grow with the market over a longer period to achieve a better financial future. And with our ongoing service, you can relax knowing that your pension will continue to be reviewed and monitored.

The autumn statement and the triple lock

It’s also worth mentioning that in the recent budget, it was announced that the triple lock is here to stay and from April 2024 there would be an 8.5% increase in the state pension, increasing the value by £17.33 a week (£901 a year). This is great news for pensions and retirement planning.

How to prepare for 2024

While we’ve got you thinking about your pension and the future, it’s the perfect time to think about your pension planning. Why not log in to your account and take care of some of your life admin jobs - maybe you have an old pension to transfer, you want to find a lost pension or would like to set up or increase pension contributions. It’s quick and easy, and you can also speak to your Pension Adviser, whenever you need to.

Capital at risk. Past performance is not a guide to future performance.

Data as at 30 November 2023. Source: Morningstar

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