Skip to main content
Corona virus

COVID-19

What it means for your workplace pension

COVID-19: what it means for your workplace pension

The spread of COVID-19 has contributed to a significant fall in share prices and, for many people, a significant reduction in the value of their pension pot.

This can be worrying, especially for less experienced investors, but needs to be seen in the context of long-term stock market performance.

Pensions are a long-term investment. It’s to be expected that the value of individual pension pots will go up and down from time to time, and more so in times like these when not only businesses but entire nations face a period of great uncertainty.

In the meantime governments, health professionals and ourselves as individuals are doing everything we can to defeat coronavirus and minimise its impact on our way of life.

So it’s important to take a long-term view. You can be sure that our fund managers will continue to work with a team of economists, strategists and analysts to make informed decisions on stock selection and investment strategy on your behalf. We’ll continue to manage our funds in line with their stated aims and objectives. We’ll continue to do our best for our customers.

Keeping track of your savings

If you want to see which funds you’re invested in and check the value of your pot, you can use our online account management facility which you’ll find at: Manage Your Account.

If you haven’t already registered, all you need is your pension account number which you’ll find in your plan documentation and annual statements.

You’ll also be able to watch a short video entitled ‘Before you change your investments’ and find a link to our fund centre which shows you what else is available.

If you’re unsure how to proceed, you might like to get professional financial advice. If you’ve haven’t got a financial adviser, you can find a list of advisers at: Unbiased.

Advisers usually charge for their services. You may be able to pay for financial advice direct from your pension pot without the need to draw on other savings. Ask your adviser for details.

Thinking about taking your pension money now?

If you are over 55 and thinking about taking your pension money now, pay particular attention to fund prices if you wish to avoid taking it when prices are low.

And watch out for tax. Usually the first 25% of your pension pot will be tax free. After that, it’s taxed as income so if you take it all out at the same time you could be liable for a higher rate tax depending on your circumstances.

Free guidance 

The government offers free and impartial guidance through a number of organisations to help you understand how your pension works and the options for taking your money out.

They can’t provide personal advice, and won’t recommend particular investment options or products but they will help you understand what’s available and the things you need to think about.

pensionwise_final_logo-01.pngpension_advisory_service-01.pngmas_logo2.png

You can contact them by phone, post, online or web chat.

If you’re 50 or over, Pension Wise also offer face-to-face consultations by appointment. 

See websites for more information.

Member helpline

You can find our helpline number in your plan documentation, on your plan website or in the online account management facility at: Manage Your Account.

Please note we apologise in advance if you encounter slower than expected response times while the COVID-19 situation continues.

Please also note that call centre staff aren’t authorised to give personal financial advice or suggest alternative investment options.

How is my pension protected?

Our workplace pensions are protected by the Financial Services Compensation Scheme so you could claim compensation from them (subject to certain limits and conditions) in the unlikely event we’re unable to fulfil our financial obligations to you. See your member’s booklet for more information or visit FSCS.

The Financial Services Compensation Scheme does not protect you from falls in value due to stock market volatility or currency fluctuations.

And finally…

COVID-19 is having a far-reaching effect on individuals, communities and businesses, which is contributing to turmoil on world stock markets and pushing share prices down.

In our opinion, this should be seen in the wider context of historical stock market performance which is notable for its ups and downs.

History shows that stock markets do recover. What we don’t know is when, by how much and for how long.

In the circumstances, it’s understandable to be concerned about your investments but we would recommend that pension savers remain calm, make informed decisions according to their personal circumstances and avoid acting in haste.

Thank you for saving with Legal & General.

 

*Please note that we are not giving advice by providing this microsite.

 

Accessibility | Security | Legal and regulatory | Privacy policy | Cookie Policy