Reasonable Rate of Return: What to Expect

The S&P 500 has returned roughly 10% per year since 1926 in nominal terms. After inflation, the real return is closer to 6.5-7%.

UK investors in global tracker funds should plan around 4-5% real returns after fees, inflation, and currency drag.

The 10% number is a useful benchmark, but it is a long-run average. In any given decade, actual returns can be dramatically higher or lower.

Using a conservative estimate in your financial plan is not pessimism. It is the difference between a plan that survives and one that does not.