Here we share the latest market update to help you understand how stock markets may be having an impact on your pension savings.
Our latest market update
5 January 2021
As another year begins, so does another lockdown for many of us. ‘Stay at home’ is the main message again, schools are staying shut and non-essential businesses have been forced to close. The good news is that two vaccines are now being rolled out across the UK, so there is some hope on the horizon.
The vaccines break-through and the Brexit deal boosted global markets but with coronavirus cases at record breaking highs in the US, and lockdowns across much of Europe, the situation is still volatile - and this means you may see the value of your pension go up and down...
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During this uncertain time, Royal London remains focused on delivering good outcomes for our customers.
We do this by following three core beliefs. Long-term thinking, greater diversification and strong governance.
While it can be hard to watch large market drops, it’s important to remember that investing for retirement is a long term game.
It’s very normal for the value of investments to rise and fall...
As the economy goes through cycles of expansion and contraction.
Our investment experts analyse and understand where we are in that cycle and which asset classes we should be investing in within the portfolio mix over the longer term...
And on a day to day basis, so that we can try to maximise returns and avoid some of the losses.
We believe that investing in a wide range of asset classes – also known as diversification...
will help to reduce the risk of having all your eggs in one basket.
This way, if one particular investment is performing poorly you shouldn’t be as badly affected.
Our Governed Portfolios have been built for saving for retirement.
Each of the nine portfolios has been designed to match a risk attitude, and term to retirement.
They’re made up of a diversified mix of assets which has helped them stand resilient for more than 11-years during times of uncertainty...
... such as the China/US trade wars and Brexit.
Our Governed Retirement Income Portfolios are designed for customers who are taking money out of their pension...
and aim to maximise returns above inflation to support sustainable, regular income withdrawals.
The portfolios hold a wide range of investments, including company shares, property, government bonds, commodities and cash in order to help them meet their objectives. This helps them to be better prepared to withstand sudden market shocks.
You can feel assured that Royal London’s investment experts monitor all our portfolios on an ongoing basis to ensure they deliver in line with their objectives over the longer term.
By keeping a close eye on what’s happening in the market, our experts can make any changes necessary in response to market events.
All our investment portfolios benefit from regular reviews, hands-on supervision and ongoing fine tuning at no extra cost.
Read the latest updates from our experts by visiting www.royallondon.com/marketupdate
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