Market Volatility Update – What This Means for Your Pension

You may have seen headlines about recent global market volatility, following the announcement of new international trade tariffs. These developments have caused uncertainty in investment markets and it’s natural to wonder what this means for your pension savings. 

Your pension is invested for the long term. While short-term volatility in the market can affect the value of your pension pot day-to-day, your investments in the L&Q default strategy are diversified across a range of investments and in different markets around the world. Your investment strategy also gradually shifts into more stable investments as you get closer to retirement — helping to cushion your savings from market shocks. 

For example, if you are more than 10 years from retirement, you will be mainly invested in global equities and diversified funds, meaning your recent contributions may be buying at more attractive prices following recent market falls. Members closer to retirement are generally less exposed to equities and more protected by defensive assets such as bonds.

While periods like this can be unsettling, it’s important not to make hasty decisions. If you’re thinking about switching funds or accessing your pension, we strongly recommend seeking financial advice before taking any action. Free guidance is available through Pension Wise (0800 011 3797).