The average personal pension fund returned 13.3 per cent in Q2 2020 after seeing returns of -15.2 per cent in Q1, according to Moneyfacts.

Data from the latest Moneyfacts UK Personal Pension Trends Treasury Report revealed that the return in Q2 2020 was the best average quarterly performance since Q3 2009.

The average performance of -15.2 per cent recorded in Q1 2020 was the worst quarterly performance on record as returns were hit by the Covid-19 crisis.

Despite the recovery in Q2, the average overall values of personal pensions remained 4.4 per cent lower than at the start of last year.

“After the sharp stock market falls in March 2020, regulators such as the Financial Conduct Authority and The Pensions Regulator were quick to urge pension savers to keep calm and not rush into any decisions about their pensions,” commented Moneyfacts head of pensions, Richard Eagling.

“The fear was that knee-jerk reactions such as changing investment strategies or making withdrawals at an unfavourable time could see individuals compound their losses and damage their long-term retirement prospects.

“Indeed, as the latest pension fund returns clearly show, those individuals that took such action may have missed out on rising pension values as the market recovered.”

The Moneyfacts report, however, found the annuity market “remained subdued”.

The average standard annuity income for an individual aged 65 rose by 0.7 per cent in Q2 2020, meaning that the average annuity income is 5.3 per cent lower than at the start of the year.

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