June market update: When you’re budgeting and saving your money

If you’re saving money into your pension then in this video Katie Eagles from our investment team covers what’s happening in the stock markets, how this might be impacting your pension, and some of the things you might want be thinking about.

Hi, I’m Katie Eagles from the investment team at Royal London and if you’re saving into your pension then I’m here to tell you a bit more about what’s happening in the stock markets, how this will be impacting your pension, and some of the things you might want to think about.  

As coronavirus has gripped the globe, we’ve seen big stock market losses and no doubt you’ll have seen the value of your pension drop. As lockdown eases across the world, global markets are showing signs of recovery, but we do expect it to continue to go up and down over the short-term. 

The most important thing to remember is that a pension is a long-term investment and time is still on your side. And it might take some time - but markets do normally recover. And some of the strongest positive returns tend to follow the biggest falls, so staying invested can pay off in the long run.

If retirement feels a million miles away for you, or you’ve experienced a drop in income, then it’s natural to think that reducing or even stopping your pension contributions might be a good idea. But continuing to make regular contributions during volatile periods means you could get more shares for your money and potentially improve your returns over the longer term. And the more you pay into a pension plan, the more you should receive when you retire. So, try not to make any hasty decisions if you can.

Having a spread of investments can help reduce the impact of market shocks on your pension. If you’re invested in a Royal London workplace pension or one of our Governed Range portfolios, then you’ll automatically benefit from being invested in a spread of different investments like company shares, government bonds and cash. This way, if one particular investment is performing poorly, you shouldn’t be as badly affected.

And finally, as this uncertain situation unfolds, you can feel assured that our investment experts are continuously monitoring the markets, keeping a close eye on your pension investments and making any changes we feel necessary in response to market events.

If you’re unsure what to do with your pension investments, then I would recommend speaking to a financial adviser. We have some information on our website on finding a financial adviser, if you don’t already have one.

And in the meantime, you can use our retirement planner tool on our website or download our mobile app to keep an eye on the value of your pension.

Thanks for watching.

If you’re unsure what to do with your pension it’s worth remembering:

  • You might see the value of your pension has gone down, but don’t panic and don’t make any rash decisions.
  • Pensions are long term investments – and it’s very normal for investments to go up and down in value.
  • The company managing your pension should be very used to dealing with this type of event and they should be making decisions to help maximise your pension value in the long term.
  • If you’re thinking about switching investments, or if you’re taking money out of your pension, we strongly recommend that you seek financial advice to consider your options thoroughly before taking any action.

For more information about how stock markets may be having an impact on your retirement savings, visit our market update page.

June market update: When you're making plans to retire in the future

If you’re starting to make plans for your retirement then in this video Katie Eagles from our investment team covers what’s happening in the stock markets, how this might be impacting your pension, and some of the things you might want be thinking about.

Watch now about June market update: When you're making plans to retire in the future

June market update: When you’re close to your retirement

If you’re getting close to retirement then in this video Katie Eagles from our investment team covers what’s happening in the stock markets, how this might be impacting your pension, and some of the things you might want be thinking about.

Watch now about June market update: When you’re close to your retirement