The average pension fund increased 13.3% in the second quarter of this year, the strongest quarterly performance since Q3 2009, according to new data.

Pension fund performance improved markedly in Q2 2020 with the average fund recovering much of the ground lost during Q1 2020, according to the latest Moneyfacts UK Personal Pension Trends Treasury Report.

In Q1 2020 the average pension fund in the Moneyfacts UK Personal Pension Trends Treasury Report lost 15.2%. Values still remain 4.4% lower than at the start of the year.

Overall 95% of funds surveyed generated positive returns in Q2.

Annuity rates remained low but increased slightly in the quarter. The average annual standard annuity income for an individual aged 65 (based on a single life £10,000 level without guarantee annuity) increased by 0.7% in Q2 2020. This means that the average annuity income is still 5.3% lower than at the start of the year.

The combination of the upturn in pension fund performance and slight increase in annuity rates combined to boost the retirement incomes of those saving into personal pensions and looking to annuitise. However, the average retirement income for those looking to secure an income from a pension pot through an annuity is still 11.9% lower than a year ago.

• Annuity data as at 1 July 2020 with data from five providers. Pensions data based on ABI Pension Data on approx 5,300 using Lipper figures.