Pension fund performance saw a boost in Q3 2016, posting a growth of 6.8 per cent over the third quarter, the Moneyfacts Personal Pension and Annuity Trends Treasury Report has revealed.

According to the report, the 6.8 per cent growth compares to the 3.9 per cent average pension fund growth in Q4 2015, 1.1 per cent growth in Q1 2016 and 4.8 per cent growth in the second quarter of 2016.

“Given the prevailing global economic uncertainty, many pension savers may have expected the performance of their pension funds to have suffered, but this has not been the case,” Moneyfacts head of pensions Richard Eagling said.

“Q3 2016 generated strong returns for most pension funds, and if they can avoid heavy losses during the remainder of the year, then 2016 will be the fifth consecutive year of positive pension fund returns. It will also be the fifth time in the last 8 years that the average pension fund has delivered double digit growth,” he explained.

The Moneyfacts Personal Pension and Annuity Trends Treasury Report, providing a review of the UK personal pension and annuity sectors, will be published later this month.

The report follows PIRC's findings last month that local authority pension funds received its best quarterly result of the past three years, achieving an average return of 5.6 per cent in the second quarter of 2016.

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