AS STOCK MARKETS TUMBLE, LOOK AT PENSION PROTECTION

 

 

The Coronavirus pandemic has had a significant impact on the financial market. The stock market has taken a tumble and is likely to remain volatile for a while. Its understandable therefore that you may be concerned about the impact on your pension and, as a result of that, it would be advisable to pull forward any review.

 

The state pension is unaffected by market fluctuations, but other than that you may want to talk to your pension advisor about how you can mitigate against any serious losses.  If you still have several years before you need to draw your pension, then you should be relatively unaffacted by any short-medium term fluctuations.  However, you may wish to increase your pension contributions as a small increase can make a sizable difference to your pot size if and when the market recovers, if you can afford to do so.

 

If you are closer to retiring, then you may wish to consider lifestyling your fund (i.e. investing in less risky stocks that have a lower return). It won't completely mitigate from losses, but may help to prevent a significant fall off.  

 

Talk to the Pensions Advisory Service to discuss your particular situation and get some meaningful advice before discussing options with your provider, and try not to panic yourself into making any hasty decisions.

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© Lifefyle Ltd 2019

Lifefyle™ is a registered Trade Mark.

Made by the Lifefyle Team.

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