Russia’s invasion of Ukraine, what we know so far

The Russia/Ukraine conflict has contributed to a significant movement in share prices and other investments which has meant, for many people, a 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 returns.

It’s to be expected that the value of your investments will go up and down from time to time and 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 and continue to manage our funds in line with their stated aims and objectives.

Everyone’s circumstances are different, if you’re unsure how to proceed, you might like to get professional financial advice. If you haven’t got a financial adviser, you can find a list of advisers at unbiased.co.uk.

• The value of my investments has fallen – should I take action?
  You may have seen a reduction in the value of your investment. You should be prepared to see volatility in the financial markets for some time to come. However, while this can be worrying, it’s important to remember that Pensions and Stocks and Shares ISAs are medium to long-term investments and history suggests that markets which go down, will typically go back up again at some point.
• Should I switch my investments to avoid further loss?
  We aren’t authorised to give personal financial advice but, if you’re thinking about switching your investment, it’s something that needs to be considered very carefully.
  If you switch out of a current investment into one that’s less volatile, it may reduce your level of risk but would also crystallise any current losses so you might lose the opportunity to recoup those losses in the future. Less volatile funds may also have less scope for growth, however different individuals will have different attitudes to risk and volatility, so may feel more comfortable with a reduced growth potential in future if it means the potential for less risk now.
• Is investing in cash the safest option at the moment?
  Investing in cash is generally viewed as less risky. But cash has a lower growth potential than other asset classes. Interest rates have recently been at an all-time low and inflation ill tend to reduce the buying power of your money, especially over the long term.
• I am thinking about taking my pension money now
  If you are over 55 and thinking about taking your pension money now, the government offers free and impartial guidance Pension Wise, provided by Money Helper, 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.
  Alternatively, if you’re unsure how to proceed, you might like to get professional financial advice. If you haven’t got a financial adviser, you can find a list of advisers at unbiased.co.uk.
  However, if you’re considering taking your money out because you are worried about the impact of the conflict in Ukraine on your investments, we would recommend that you remain calm, make informed decisions according to your personal circumstances. The value of individual pension pots will go up and down from time to time and it’s important to take a long-term view.
  If you really need or want to cash out your investments, on the basis that you need the money now or are unable to risk the potential for further losses to the value of your pot, you need to ensure you have considered the long-term implications and that you are comfortable with the potential for losing out significantly over the longer term. Remember, taking your pension benefits is a one-off decision. You should only cash in what you need.

And finally…

It’s understandable to be concerned about your investments but we would recommend that you remain calm, make informed decisions according to your personal circumstances and, if you are unsure how to proceed, consider getting professional financial advice. If you haven’t got a financial adviser, you can find a list of advisers unbiased.co.uk.

Thank you for saving with Legal & General.