What if the value of my pension plan goes down?

The money in your pension plan is invested to help it grow over the long term 

And because it’s invested, sometimes you’ll see the value of your plan go up

And other times you’ll see it go down

You could even get back less than what’s been paid in

This is because investment markets respond in different ways to world events, investor demand, politics or changes to interest rates 

Think about the drops you might have noticed when the coronavirus pandemic hit 

Compared to the rises you might have seen in the period afterwards 

You can’t control what markets will react to 

But you can control how you respond 

When you see the value of your plan drop 

It’s easy to panic and make a quick decision like moving your investments 

But you may be switching after markets have already fallen 

And importantly, before they have a chance to rise again 

If that’s the case, it could mean you’re accepting your losses 

And also missing out on any potential recovery 

So it’s important to take a step back and think about three important things: 

First, market ups and downs are normal and markets can recover over time 

Second, be cautious about only thinking of the short term

Finally, remember that your pension money is invested to give it a chance to grow over the long term 

So when it comes to checking your pension plan’s value 

Remember to keep calm, think about whether your investments are on track to meet your long-term goals, and get advice if you need to.