Over the past few days, markets have reacted to the conflict in the Middle East. If the situation gets worse, we may see more ups and downs in investment values. We know some members might be worried about the impact on their Defined Contribution (DC) pension pots.
It’s natural to feel worried when markets are unsettled. But it’s important to remember that pensions are long-term investments. Staying focused on your long-term goals and reviewing your pension plans periodically (rather than reacting to headlines) is often the most sensible approach.
As Trustee, we are also keeping a close eye on the Scheme investments. One of our key roles is to monitor the performance and suitability of all the Scheme’s funds. Short-term ups and downs are normal in all markets. When we change the investment options, we do so with a long-term view and not as a quick response to market swings.
We will be monitoring the situation and will post again on the Scheme website, futurefocus, if we need to update you again.
We recommend that you make sure that your chosen investments match your plans for taking your DC pension pot, especially if you are closer to retirement. If you are thinking of making investment changes, you should consider taking financial advice from a regulated financial adviser. If you need help to find a financial adviser you can visit Money Helper.
The value of your DC pension pot is always linked to the price of the investment funds which make up your investment choice. This means that the value of your DC pension pot is not guaranteed and can fall as well as rise.