With just two weeks to go to the January 31st deadline, and so many special offers and new pension products on the market, we thought it might be useful to remind readers of the most important points to consider when buying a personal pension.

The 1998 Family Money Personal Pension Survey showed how the strong performance of financial markets over the previous few years had resulted in a recovery in values from 1997 figures, but the overall trend since 1992 was downward. This was mainly due to lower interest rates, lower inflation and a more realistic paying out of annual bonuses by the with-profit pension providers.

Since 1992, the best performing pension funds, into which a total of £20,000 (#25,394.76) had been contributed over the previous 10 years, have dropped from a high of £54,369 paid out by Scottish Provident in 1992 to the £42,662 paid out by Standard Life's unit-linked fund this year. Over 15 years the payout has dropped from a high of £120,617 in 1994 (again from Scottish Provident) to New Ireland's £102,664 this year. Twenty-year values, which have only been available for three years have bucked this trend and have increased in value from £241,814 from Scottish Provident in 1996 to £265,567 from Friends First this year, mainly on foot of the high stock market returns and final bonuses.

The likely scenario for pension fund performance over the short term is moderate growth, mainly on foot of strong European market performance, and returns that will probably work out in the region of 68 per cent. For that reason it is important to consider the following when choosing a pension fund:

Look carefully at the cost structure of the product. Ideally arrange for it on a fee-only, nil-commission, nil-unit allocation basis to maximise the investment. Be prepared to pay your adviser a reasonable fee; ask him to show the impact of the fee on the short and longer term fund values. Shop around;

If you go for a conventional product, try to choose one that spreads the charges over the lifetime of the fund in order to give you a better transfer or paid-up value if your current work circumstances change and you are forced to stop paying into it or shift it to a new employer who offers you an occupational scheme. High upfront charges will have a huge impact on the early values (i.e. up to 10 years) of a pension fund;

Make sure you are making the appropriate level of contributions for tax deduction purposes, currently 15 per cent of net earnings, 20 per cent per annum if you are over 55. These funding limits are expected to change from this April when they will be age-related. Consider taking out life assurance in addition with the pension in order to claim tax relief on those premiums also;

Ensure you understand where your money is being invested and whether this allocation of assets suits your risk profile and age. Don't settle for an ordinary mixed, managed fund if you could handle the higher risks associated with mainly equity investment. Ask for an asset allocation breakdown - what percentage of the fund is invested in stocks and shares, bonds, cash and property? What industrial sectors or countries are represented? How many free switches (in and out of equities or other assets) are you allowed?

Find out how much information about fund growth, asset allocation and on-going charges the company or your broker will provide you with every year. Hibernian Life's Open Plan annual statement is one of the best on the market. It comes in the form of a bank statement, and tells you exactly how much you have paid in, what the pension's current value is, how the fund is broken down by sector, how many switches you did, the annual management charge, etc;

Ask about the recent and distant past performance of the fund. Are you happy with a fund that has shown a steady, reliable performance record, or are you keen on one with superb highs (and some spectacular falls) along the way?

The emergence of consensus funds suggests that this kind of steady performer is what many people now want. Others will continue to opt for more aggressively managed funds with higher equity content. Keep in mind that every extra percentage point of growth will translate into several extra thousand pounds of fund value, especially over longer investment periods.

Find out if your pension fund provides any kind of annuity protection clause or guarantee. The Minister for Finance, Mr McCreevy indicated in the last budget that compulsory annuity purchase at retirement is to be abolished, but annuity purchase will probably still be required once the retiree becomes 70-75. Some pensions offer a minimum annuity rate, which can be very comforting in this low-interest rate environment. Copies of the Family Money Personal Pension Survey are still available from the financial advisers, FDM at 045-442051, price £30 for a printed copy and £25 for an email copy.