Consultant-led provider LifeSight and SEI Master Trust delivered the highest returns for younger savers in the year to Q4 2024, returning 23.26 per cent and 21.05 per cent respectively.
The Corporate Adviser Pensions Average (CAPA) for the period stood at 15.15 per cent. But the year-end figures do not reflect the market turmoil that has followed the inauguration of President Donald Trump, with Q1 2025 data expected to show significant falls.
CAPA Data is the only publicly available information source covering the performance of DC workplace pensions providers, covering the pension savings of 18 million UK savers The Corporate Adviser Pensions Average (CAPA average) is the average (mean) return delivered by the largest default funds of the 20 main multi-employer DC providers, covering both master trusts and group personal pensions (GPPs).
SEI Master Trust recorded a 15.31 per cent one-year return, securing its position as the top performer over five years with an annualised 12.41 per cent return for young savers. LifeSight’s 23.26 per cent one-year return also contributed to a five-year figure of 11.31 per cent. But Aon, which posted a 19 per cent one-year return, delivered a 12 per cent five-year return.
At the lower end of the table, LGIM MAF delivered just 5.99 per cent in the year to Q4 2024.
Pre-retirement phase
Savers five years from retirement saw more moderate returns, with the CAPA average for this group standing at 10.27 per cent over one year and 5.11 per cent over five years.
SEI Master Trust topped the five-year performance table for this group, delivering an annualised return of 9.27 per cent before charges.
LGIM TDF underperformed with a five-year return of just 2.94 per cent, while Fidelity followed closely with 3.00 per cent.
At-retirement returns
SEI Master Trust, Aegon, and LifeSight delivered the highest one-year returns, with SEI Master Trust leading at 11.33 per cent, followed by Penfold at 10.10 per cent and Hargreaves Lansdown 9.80 per cent. At the bottom was Mercer at 5.04 per cent, followed closely by LGIM TDF at 5.06 per cent.
SEI Master Trust remained the strongest performer with an annualised return of 6.97 per cent, ahead of Penfold’s 4.75 per cent over a five-year period. Hargreaves Lansdown, at the lower end, recorded a five-year return of just 1.20 per cent, while Fidelity stood at 2.20 per cent.
The CAPA average return over one year stood at 7.58 per cent and over five years at 3.55 per cent.
CAPAdata offers comprehensive data on the returns and volatility of master trusts at different stages in the savers journey – 30 years from state pension age (SPA), 5 years from SPA and 1 day from SPA. For real-time performance data go to www.capa-data.com or for more detailed analysis of the DC pensions sector click here.
