Given the current volatile markets, it is unsurprising that there might be a certain uneasiness surrounding pensions, especially if low interest rates persist. There are questions that need to be addressed – do you opt for the security of an annuity or keep the pension fund invested and take a possibly greater income?
Remember though, that these volatile markets can present interesting opportunities. For one, as mentioned, acting too quickly can be less beneficial especially if you are a long way from retirement. Instead, play the long game and remember that a fall in the markets means that buying investments in your pension fund is currently possible at lower prices.
What is paramount though is staying on top of your pensions. Keep an eye on where they are being invested. A prudent approach is to have a diversified investment strategy but if you are not sure then seek advice from a professional who can direct you.
Please be aware, the value of investments will go up and down and you may get back less than you invested. Any tax benefits or tax planning opportunities depend on individual circumstances and are subject to change.
Keep calm and carry on paying into your pension: Savers face difficult choice between volatile stock market and tumbling annuities