What to do when volatility strikes

If you're close to your selected retirement age, your money may already be set up to be invested in lower risk funds that may be less susceptible to market volatility. This is known as a 'lifestyle' strategy, aiming to reduce investment risk as you get closer to retirement, with safer investments. The level of the risk can be higher in volatile markets, during periods of unpredictable and sometimes sharp price and interest rate movements, which means that the value of your investments can fall in value dramatically during those periods.

What you can do now:

If you're worried about the level of risk you're taking with your money, what you can do first is check your retirement age to make sure it reflects your goals. The retirement age is set automatically in PlanViewer when you start saving into your Plan, but you can choose a date that is right for you. 

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If you're approaching retirement, you might want to make sure your investment strategy still reflects your goals and the level of risk you want to take.

What you can do now:

You may want to consider if and/or when you'd like to invest in funds with a lower level of risk, such as a cash fund (although please be aware that cash investments can still fall in value over time due to inflation and charges/fees). Reducing the risk reduces the possibility of your retirement savings falling in value just when you need to start using them. But remember, the value of your investments can always go down as well as up.