Are you worried about market volatility during coronavirus?

The COVID-19 pandemic that’s sweeping the globe is unsettling for us all, and the stock market has seen huge swings and heightened volatility.

Here we share some tips to try and help you feel a bit better about what’s happening with your pension investments.

1. Think long-term

The key thing to remember is that a pension investment is for the long-term. We know that the dramatic changes you’re seeing right now in your pension’s value can be very worrying, but over the long-term history has shown that eventually markets do usually recover. For instance, look at how the markets recovered after the Global Financial Crisis – over the long-term being invested in the stock market does provide the opportunity for growth. But, as you've seen, the value can go up and down and there’s still a chance you could back get back less than you put in. It also depends how markets perform and when you decide to take money out.

2.  Stay calm and stay invested?

When the stock markets plummet it’s normal to feel worried and you might feel tempted to put your money into cash instead or a lower risk investment. This could mean that you might miss out on the point when the value goes back up again. If you’re unsure what to do, then you should speak to a financial adviser.

3. Spread your investments

Most financial experts agree the best way to invest your pension is to have a spread of investment types. 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 assets from lower risk bonds to higher risk equities. This way, if one particular investment is performing poorly, you shouldn’t be as badly affected.

4. Should I keep paying into my pension?

With the uncertainty of the current situation it’s understandable to have money worries and you might even be considering reducing your pension payments. While continuing to pay your money in you will still be invested, giving it more of a chance of future growth. If your financial circumstances have changed and you're thinking of changing your payments, speak to your adviser.

5.  Talk to an expert

If you’re really worried about your pension investments, thinking about switching investments or taking money out of your pension then we strongly recommend you speak to a financial adviser before taking any action. There are a number of directories that you can use to search for one in your area and according to their specialisms. Find a financial adviser