You may have noticed a fall in the overall value of your savings during 2020. This was due to the expected economic impact of the COVID-19 pandemic, which made markets more prone to big shifts between gains and losses.
This is normal, and we expect markets to continue to behave in a similar hard-to-predict way. Pensions are a long-term investment for most people and remaining invested in the markets still remains the best approach. Don’t forget, if you’re within 15 years of your planned retirement age we’ve already started to protect your pension by gradually moving it to lower-risk investments. So the people closest to retirement wouldn’t have been affected as much by the changes in values caused by COVID-19.
Since March 2020 the Diversified Growth Fund’s value has recovered much of its value. However, we expect further changes in values in the coming months and years.