Almost nine in 10 (89 per cent) medium-high- and high-risk defined contribution (DC) pension funds have failed to match the FTSE 100's performance over the past five years, according to research from Investing Insiders.

The analysis reviewed 12,983 funds available to UK savers between 31 December 2020 and 31 December 2025, collectively holding more than £1trn in assets.

Of the 7,370 funds in the medium-high and high risk categories, 6,540 - or 89 per cent - underperformed the FTSE 100 over the same period.

Over the five years to 31 December 2025, the FTSE 100 delivered cumulative returns of 84.67 per cent, meaning £50,000 invested in line with the index would have grown to £92,335.

In contrast, the worst-performing fund identified in the study fell by 98.59 per cent over the period, reducing a £50,000 pot to just £705.

This represented a difference of more than £91,000 compared to the FTSE 100 benchmark over the same timeframe.

The second-worst performer declined by 91.46 per cent, while several property and equity income funds also featured among the 10 weakest performers.

By contrast, the strongest performing fund in the analysis delivered returns of 180.28 per cent over the five-year period, increasing a £50,000 investment to £140,140.

Investing Insiders founder and managing director, Antonia Medlicott, described the findings as “alarming”, arguing that many savers may have wrongly assumed their pension was progressing at a satisfactory rate.

She said some of the poorest performers were “effectively wiping out the future for the holders”, despite being in the same risk category as funds that had nearly tripled their investments over five years.

Subsequently, Medlicott called on providers to do more to inform members when performance fell below defined thresholds and to ensure default schemes offered better value.

She also urged individuals to take a greater interest in their pension performance and the risk levels of their chosen funds, noting that fund suitability should change based on age, retirement goals, and personal circumstances.

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