The aim was/is aim for 12%overall, less 4% for inflation over 20-25 years
The argument being that although current interest rates are pretty much 0, and not much higher as an average for the last decade, the previous decade averaged 18%. Average growth over the last 80-90 years has typically been near as damn it 12% year on year...
Retirement fund is perhaps more accurate than pension fund. As already said, I will be seeking professional advice before committing to anything, but as a rough idea of what I am considering...
Mutual funds with proven record of 10+ years growth, split equally
1. Growth and Incomne funds, (Blue Chip).
2. Growth funds, (Equity/S&P500).
3. International funds.
4. Aggressive Growth funds.
As a further thought, presumably there is no reason why instead of paying, say, £500 each month into a pension fund for 25 years, so a total of £150000 hypothetically, that that amount couldn't be saved up and then be invested as a one off amount with a view to allowing it to mature for twenty years