What does the global pandemic mean for pension investments?
Pensions are long-term savings plans, so short-term changes may not affect what you could get when you retire. COVID-19 has impacted on markets and investments globally. However, since the outset of the pandemic, many markets have staged a significant recovery as governments around the world have affirmed their commitment to do whatever it takes to address the challenges it has caused.
Creative Pension Trust’s default investment strategy (which is used for all members who have not made their own investment choices) is designed to try and mitigate the impacts of events like this. Members should be assured that their savings are in a good position for the long term. It’s important to remember that pensions are long-term savings and, although it is not possible to predict how long it will take, we expect markets to recover as stability returns.
Most Creative Pension Trust members are unlikely to experience a material long-term impact from shorter-term market falls because they’re young enough to ride it out. If you’re closer to retirement and in the Creative Pension Trust default investment strategy (which is normal unless you have chosen your own investment funds), we’ll have already taken steps to move your money out of global stock markets gradually during the 15 years leading up to your 65th birthday (the scheme’s normal retirement age) to reduce the risk of dramatic changes in the value of your pension savings.