Impact on your pension savings
From keeping track of your investments to finding out how current market trends might affect your savings, you’ll find helpful information here.
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Where can I keep track of my pension 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 Manage Your Account.Opens in new tab
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 haven’t got a financial adviser, you can find an adviser local to you at unbiased.co.ukOpens in new tab.
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.
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How will current market conditions impact my pension savings?
The spread of COVID-19 contributed to a significant fall in share prices and other investments which has meant that many people have seen a reduction in the value of their pension pot.
We should be prepared to see volatility in the financial markets for some time to come. However, while this can be worrying, especially for less experienced investors, it’s important to remember that pensions are long-term investments and history suggests that markets which go down, go back up again at some point.
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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.
If you want to see which funds you’re invested in and check the value of your pension plan, you can use our online account management facility which you'll find at Manage Your AccountOpens in new tab.
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 haven’t got a financial adviser, you can find a list of advisers at unbiased.co.ukOpens in new tab.
Advisers usually charge for their services however 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.
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How long before the stock market recovers?
It’s impossible to predict but we do know that markets can and do recover.
For instance, if you look at the performance of the FTSE 100 and other indices on London Stock ExchangeOpens in new tab, you’ll see how markets have gone up and down since records began.
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Is investing in cash the safest option at the moment?
Investing in a cash fund is considered to be less risky with a lower potential for growth than other asset classes but interest rates are at an all-time low and inflation will tend to reduce the buying power of your cash fund, especially over the long term.
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 an adviser local to you at unbiased.co.ukOpens in new tab. Advisers usually charge for their services.
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Will low and negative interest rates impact my savings?
From time to time, the Bank of England will amend the base interest rate as a mechanism for controlling inflation in the UK. In response to the COVID-19 pandemic, the Bank of England reduced its base interest rate to 0.1% in March 2020 and it remains a possibility that this figure could become negative should the UK economy require further stimulus.
If you invest in a cash fund, it’s important to understand that that its value is linked to interest rates, so if the Bank of England introduces negative interest rates, then your investment in a cash fund is likely to go down in value. This means your investment in the fund could be worth less than you put in.
Furthermore, during periods of low or negative interest rates, any investments you have in lower risk funds (including cash) could go down in ‘real value’ should the rate of inflation remain higher. This means that the purchasing power of your money goes down.
If you're concerned about the impact of low or negative interest rates and inflation on your pension savings, we recommend you take advantage of the free and impartial guidance provided by the Government's Pension WiseOpens in new tab service. Please note that Pension Wise guidance over the phone is only available to the over 50s. Alternatively, you can find an adviser local to you at unbiased.co.ukOpens in new tab. Advisers usually charge for their services.
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Will the amount of pension I receive now be lower because the stock market is falling?
If you’re in a final salary (Defined Benefit) scheme or have bought a pension annuity, the amount you receive should not be affected by recent market performance.
If you’re in a defined contribution scheme, the value of your pot may have reduced but it’s important to consider this against your overall circumstances and when you’ll need to access it.
Manage Your Account
If you want to see which funds you’re invested in and check the value of your pension, you can use our online account management facility Manage Your AccountOpens in new tab.