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Investment markets can be affected by countless factors beyond our control, such as political and economic uncertainty.

So during times of volatility, when the value of your investment is fluctuating, it can be worrying and make you panic.

As a result, you might be tempted to:

  • Reduce your pension contributions
  • Sell or switch your investments

But it’s important not to panic in the face of short-term market movements.

Retirement is a long-term strategy.

Key points to remember

Don’t try to time the markets

It’s impossible to accurately time the markets, and if you panic during a slump, you could miss out on future growth opportunities. Markets always recover in the long-term.

Diversify your portfolio

Since you can’t accurately predict markets, it’s important to mitigate risk as much as possible by diversifying your investments. This can cover traditional pensions, as well as equities, bonds and cash.

Don’t be alarmed by bad headlines

Many news stories on market volatility may not actually be about the assets you’ve invested in, and may therefore not reflect your situation. So focus on your specific circumstances, rather than the wider economic picture. Find out how to check the value of your pension here.

Review your pension plan regularly

It’s important to make sure your pension plan aligns with your retirement goals, so review it regularly, so you can rebalance your portfolio and adjust your contributions when necessary. Find out more about how to change your investments here.

Ask for advice and support

If you are feeling worried, seek advice and support rather than acting rashly. You can get help from the likes of MoneyHelper, Pensionwise and Citizens Advice. You could also speak to a professional financial adviser, who can take a holistic look at your finances and give you the confidence and assurances you need.

Above all, stay focused on the long term

Short-term events are likely to have little impact on your pension in the long-term, so don’t make rash decisions that could adversely affect your retirement plans.

Take charge of your retirement planning with the Creative Pension Trust Member Portal.

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