How coronavirus could be impacting your pension

Rachael Oku

by , Head of Brand and Communications

04 Feb 2020 /  

04
Feb 2020

World map with gold countries on a pink background

If you’ve checked your pension in recent days you may have noticed some fluctuations to your balance. That’s because markets are currently experiencing volatility, caused by the coronavirus outbreak.

More than 20 countries have banned travel to China, which has had an immediate effect on the Chinese economy. Now other markets are beginning to experience uncertainty as the world waits to see how the outbreak unfolds.

Markets have been impacted similarly during past outbreaks of serious illness (such as SARS and bird flu), and after short periods of uncertainty, markets recovered. We would therefore expect the same to happen in the case of coronavirus, however, at this stage, it’s unclear how long the current period of uncertainty could last.

Remember, pensions are a long-term investment

If your balance dips, we know that it could be unnerving, as you may not have seen your pension go down before. It’s important to remember that most downturns don’t last longer than a few months and short-term fluctuations are unlikely to cause any lasting damage – especially if you’re several years away from retiring.

It’s also good to know that most of the PensionBee plans are diversified which means they’re invested in a range of different assets such as shares, cash, property and bonds. Your money’s also invested across several different markets, from North America to Japan. This helps to shield your savings from the full impact of turbulence in any one market and gives them more opportunities to grow. You can find a detailed breakdown of each of our plans, including investment breakdowns, and past performance on the plans page. Please note, past performance should not be used as an indicator of future performance.

As long-term savers we have to take the rough with the smooth, and be patient during the dips. However, as with any investment you make, there’s always a risk that you could get back less than you started with.

The best thing to do in periods of uncertainty is keep an eye on the business headlines and log into your BeeHive where we’ll post any updates. If you have any questions don’t hesitate to get in touch with your personal BeeKeeper or give us a call on 020 3457 8444.

Have a question? Call our UK team 020 3457 8444

Have a question?

Call our UK team

020 3457 8444

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