The best performing growth phase multi-employer pension default fund delivered a pre-charge return of 94.9 per cent in the five years to the end of 2025, more than triple the return of the poorest performer.
Figures from www.capadata.co.uk , the data arm of Corporate Adviser, show SEI’s Flexi-default (Drawdown) fund’s strategy delivered a 94.9 per cent return for younger savers, with 30 years to state pension age, compared to an industry average – reflected in the CAPA (Corporate Adviser Pensions Average) average – of 55.9 per cent.
The data, which shows, SEI, LifeSight and Aon topping the five-year figures, with returns of 94.9 per cent 87.6 per cent and 76.1 per cent respectively, suggests that there is currently no correlation between size of provider and greater returns.
L&G’s Lifetime Advantage Fund (LAF), chain-linked to its Multi-Asset Fund since 1 July 2025, had the lowest five-year return at 30.8 per cent. However, the switch to the LAF has had a positive impact, with this default delivering the third-highest return over one year, to 31.12.25, at 16.7 per cent, 2 percentage points above the one-year CAPA average of 14.8 per cent.
| Provider | Growth – 5 yrs return |
| SEI | 94.9% |
| LifeSight | 87.6% |
| Aon | 76.1% |
| Aegon | 69.9% |
| Fidelity | 69.3% |
| TPT Retirement Solutions | 68.8% |
| The Lewis Workplace Pension Trust | 65.0% |
| Royal London | 57.4% |
| Smart Pension | 56.2% |
| CAPA | 55.9% |
| Scottish Widows | 55.1% |
| NatWest Cushon | 54.1% |
| The People’s Pension | 49.6% |
| Nest | 48.9% |
| Aviva | 48.3% |
| Hargreaves Lansdown | 46.9% |
| Legal & General | 46.5% |
| Aegon | 43.8% |
| Standard Life | 40.2% |
| Now: Pensions | 40.0% |
| Mercer | 37.5% |
| Legal & General | 30.8% |
For exact details of these default strategies see CAPAdata website. The CAPAdata data set covers three points in the savings journey – 30 years from SPA, five years from SPA and one day from SPA, an approach mirrored by the Government’s planned value for money framework.
Funds five years from SPA delivered an average return of 11.6 per cent in the year to 31.12.24, with the highest performer being LifeSight at 14.4 per cent, followed by SEI, and Fidelity.
Over five years, the average annual pre-charge strategy used for savers five years from SPA is 6 per cent. SEI saw the highest average return at 10.7 per cent, followed by the Lewis Workplace Pensions Trust
For strategies at the end of the accumulation journey, the top performer in the year to 31.12.25 was Aegon’s BlackRock Lifepath Flexi default, with a pre-charge return of 14.7 per cent. It was followed by LifeSight (12.5 per cent) and SEI (12 per cent). The CAPA average was 9.6 per cent, with the lowest being The Lewis Workplace Pensions Trust at 5 per cent.
Over the last five years, final-year pre-charge returns of UK multi-employer defaults averaged 4.1 per cent, with SEI’s drawdown default having the highest average return at 8.2 per cent, and People’s Pension the lowest at 2.1 per cent. However, these two defaults serve different parts of the market, with People’s Pension members far more likely to take their pot as cash, while SEI’s drawdown fund has a significantly higher equity weighting.
| Provider | Growth – 1 yr return |
| LifeSight | 20.6% |
| SEI | 17.7% |
| Legal & General | 16.8% |
| Aegon | 16.1% |
| Now: Pensions | 16.0% |
| Legal & General | 15.5% |
| Fidelity | 15.4% |
| The People’s Pension | 15.4% |
| Penfold | 15.1% |
| CAPA | 14.8% |
| Scottish Widows | 14.7% |
| Aviva | 14.4% |
| Mercer | 14.4% |
| TPT Retirement Solutions | 14.2% |
| The Lewis Workplace Pension Trust | 14.1% |
| Aegon | 13.9% |
| Royal London | 13.8% |
| Hargreaves Lansdown | 13.8% |
| NatWest Cushon | 13.2% |
| Nest | 13.2% |
| Aon | 12.7% |
| Standard Life | 12.5% |
| Smart Pension | 12.0% |
Sam Seaton, CEO of CAPAdata says: “These figures shine a light on the performance that will ultimately shape the retirement experience of millions of people. It is important for trustees, providers, advisers and employers to ensure they understand how schemes are performing compared to their peers, and make sure their investment strategy is meeting their objectives.”
John Greenwood, editor of Corporate Adviser, says: “These figures show just how important investment returns are in delivering good member outcomes. Currently the DC sector is largely focused on delivering the largest possible pot size. It will be fascinating to see how the advent of retirement income solutions will influence investment strategy for savers.”
