The funds have been outperformed by the FTSE All-Shares Index over the past ten years, according to an IFA.
A clear majority of the largest pensions equities funds have been outperformed by the market over recent years, analysis from Independent Financial Advisors (IFA) Hargreaves Lansdown has shown.
In collaboration with the Times newspaper, the firm found that 17 of the largest 25 pension equity funds have been outperformed by the FTSE All-Shares Index over the past three, five and ten years. These badly-performing funds look after around £17 billion of retirement savings.
The single worst fund was found by Hargreaves Lansdown to be Canada Life's UK Equity Fund, which would have returned just £349 on a typical £10,000 investment over the decade.
Speaking to the newspaper Laith Khalaf, a pensions analyst at the IFA, said: "Pension investors should review their holdings and get rid of the rubbish. If they don't, they will miss out on a more affluent retirement while paying their fund manager for doing a half-baked job. There are some good insurance company-managed pension funds - but there is also far too much dross."
Responding to the new research, a financial expert suggested that switching to a better provider might be the solution for people stuck in the poorly performing funds. However, Steve Potter at Tilney Private Wealth Management added that customers who do this might be hit with penalty fees if they do decide to move.
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