1 March 2021
1 March 2021
With roadmaps out of lockdown announced across the UK, the route to some sort of normality seems clearer. We’ve been told the easing of restrictions is being driven ‘by data rather than dates’, and so we’re all hoping that the fall in hospitalisations, case numbers and deaths continues, and we’ll enjoy better days ahead.
The UK’s vaccination roll-out is the envy of many European neighbours, and its success isn’t mirrored across the globe with some countries struggling to secure supplies - and this is impacting global stock markets which continue to be volatile.
It’s rumoured that the chancellor Rishi Sunak is planning to announce a ‘giveaway budget’ to help the UK economy bounce back post-lockdown. This could see the introduction of vouchers to encourage high street shopping, lower alcohol duty for restaurants and pubs and an extension to the furlough scheme.
If you’re a furloughed employee, your employer will continue paying into your pension. However, if your company is paying you a reduced salary, your pension contribution is likely to be lower and it’s worth thinking about how this might impact any future plans you may have.
It’s important to remember that pensions are long term investments. It’s very normal for the value of investments to go up and down. Although not guaranteed, the hope and expectation is that values generally go up over the longer term, despite this short term volatility.
Making decisions based on what’s happening in the short term can be a risky thing to do. It might be tempting for example to take money out of your pension – but in doing that, you might miss out on the point when the value goes back up - so you could lose out in the long term.
As the uncertain situation continues to unfold, 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 thinking about switching investments, or if you’re taking money out of your pension, we strongly recommend that you speak to a financial adviser to consider your options thoroughly before taking any action.