Coronavirus and Your Pension

What You Should Know About the Coronavirus Pandemic and Your Pension

The global pandemic had caused markets to fluctuate extensively during 2020, and this could have affected your pension.

Coronavirus and Your Pension

You may have noticed your pension fund’s balance moving up and down during 2020.  That fluctuation is a result of volatile markets due to the Covid-19 outbreak. This is the impact of Covid 19 on pension plans.

The outbreak saw numerous travel bans, initially with China and then later across the globe. Not only did this affect China’s economy, but it also created uncertainty in other markets.

The response of markets to the Coronavirus outbreak1 is nothing new. History has shown us that markets have responded similarly to other viral outbreaks such as SARS and bird flu. And after a short period of disruption, the markets showed a recovery.

Simply Put

There is no reason to expect markets to won’t bounce back from the current pandemic, as they have in the past. The only difference is that it is still unclear how long the recent disruption will last.

You’re In It For The Long Haul

You’re In It For The Long Haul

It can be unnerving to see your balance take a dip, especially if you haven’t seen your pension fund fall before. Keep in mind that pension losses due to coronavirus only lasted for a few months and short-term fluctuations seldom pose any real danger to your retirement fund – especially if you’re still a long way from retirement age.

Besides, most pension plans invest in a diversified portfolio2. This means your fund is invested in various assets – such as cash, shares, bonds and property – in markets across the globe.

What does this mean for you?

A diversified approach to investing helps to protect your savings fund from the full impact of disruption in the market while giving your money more opportunity to grow.

Ask your pension provider for a detailed breakdown of your investment plan and past performance, to give you an idea of how your savings will fair the long term.

Got Questions? Check These First

How Has Coronavirus Affected My Pension?

Does a Diversified Portfolio Investments Protect My Pension During the Pandemic?

How Does the Stock Market Affect My Pension During the Coronavirus Outbreak?

Will my pension recover from the market downturn caused by Coronavirus?

In Conclusion

Any investment offers the risk that you could end up with less than the amount you invested. However, when it comes to long term savings, a balanced investment strategy will usually see you through the rises and falls of the market – you just have to be patient as you wait for your fund’s balance to recover.

Coronavirus and Your Pension

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