Over the last few days and weeks there has been some global investment market uncertainty and we understand that some members may be concerned about the impact on their pension savings.

However, even when investment markets are volatile, the HSBC Bank (UK) Pension Scheme (the Scheme) remains a good way to save for your long-term future.

Members invested in the targeted and self-select fund investment strategies will have seen some falls in the value of their DC pension pots over recent days and weeks. It’s important to remember that your DC pension pot is being invested for the long term. Whilst investment markets can go up and down in the short term, the aim for the growth phase of all three of the Scheme’s targeted investment strategies is for your DC pension pot to grow over the long term. 

If you are in the default investment strategy (the Flexible Income Strategy) and you are closer to your Target Retirement Age, your DC pension pot will have already been automatically switched into a diverse mix of investments including lower-risk investments such as cash. And don’t forget, if you are planning to take a flexible income at retirement, your DC pension pot will continue to be invested even after you decide to take an income. 

If you are invested in the freechoice range of funds, it’s worth checking that your DC pension pot is doing what you want it to, for example, that the investment risk is right for you.

In summary, it is important to understand that short term market volatility is expected and is a feature of all investment markets. The Trustee maintains oversight of market movements and takes guidance from its professional advisers, however changes to investment strategies are always considered over the long term and are not made in reaction to short term market movements. While the aim of each of the targeted strategies is to provide for growth over the longer term and for assets to be invested in lower risk funds as members move nearer their Target Retirement Age, 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.

If you are approaching retirement or 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.