Anyone thinking about taking out a pension should do a bit of research into the various pension fund managers, examining the expertise of the investment team, its historical performance and investment strategies. The 1999 Pension Investment Managers Report compiled by BCP Stockbrokers stresses that investment performance is the most significant factor in determining the ultimate value of a pension, a poor performing pension fund would have a dramatic effect on your retirement income. There can be significant differences between the various companies, in terms of their investment strategies and the geographic location of their fund management teams. For example some companies use their locally-based fund managers to manage their Irish assets and use overseas affiliates to manage their international pension assets.

This can have a significant effect on its investment performance. Because investment decisions are made by individuals in these organisations it is important to focus on the skills and track record of the various fund managers before allowing them to manage you pension. While it has been the norm for investors to analyse pension fund performance over the longer term, say 10 to 15 years, BCP suggests it is more meaningful to consider the most recent five years given the number of new entrants over that period. BCP's research shows that bigger is not always better. When it comes to investment performance the size of funds under management does not necessarily guarantee the best returns. Over five years, Eagle Star emerges as the top performer yielding gains of 18.9 per cent for investors.