With recent global uncertainty causing volatility in financial markets, it is important to remain focused on your retirement plan and not become deterred. It has seemingly been one thing after another in recent months and years and it is understandable for individuals to have concerns surrounding the underlying investments in their workplace pension pots.
Over the shorter-term, performance graphs and investment figures make for grim reading. The following graph shows how the default investment funds for our most common pension providers have fared since the beginning of 2022…
The conflict between Russia and Ukraine resulted in a rocky start to the year. The immediate aftermath of this was an energy crisis, driven by the fact that the main energy giants such as Shell and BP pulled out of many Russian energy deals and looked elsewhere for an oil supply.
Taking a longer-term view, however, reaffirms the fact that investing, particularly when it comes to workplace savings, should always be considered a waiting game.
Looking at the five-year view, all sectors felt the impact of the pandemic. However, just as quickly as markets nosedived, they recovered with the same speed. The fact that these pension funds invest in a diverse number of sectors, as well as the use of ‘lifestyling’; especially helps those who are approaching retirement to take less risk (as they cannot afford to take the same amount of risk).
It is important that your scheme retirement age is accurate, as your pension de-risking will be linked to this age.
This blog is for your general information and use only and is not intended to address your particular requirements. The content should not be relied upon in its entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of the content. The value of your investments can go down as well as up and you may get back less than you invested. All figures were correct as of July 2022. PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.