Andrew Megson, the executive chairman of My Pension Expert, noted there is evidence that this has been particularly unnerving for pensioners who have felt forced to take risky actions: “Britons have been unnerved by seeing their savings and investments impacted by these market fluctuations.
“For instance, My Pension Expert’s recent research of more than 500 over-40s in the UK revealed that 17 percent had withdrawn part or all of their pension investments in 2020 because they had decreased in value.”
Taking a reactive stance can be problematic for retirement prospects and Andrew went on to advice savers to look into alternative options: “Withdrawing money from pension schemes the moment markets drop will only crystallise losses. Therefore, it is often advisable for savers to remain calm and leave their retirement savings where they are. Over time, the markets could recover – and so too will the value of pension pots.
“I urge those concerned about the state of their pension to seek out independent financial advice.