Economic uncertainty and market volatility can feel unsettling. But it’s important to re-member: your pension is designed for the long term. Your regular monthly contributions help take advantage of lower prices during downturns, and staying calm, disciplined, and invested — with an investment approach that aligns with your time to retirement — is key to long-term success.
1. Pension saving is a long-term strategy
Your pension plan is designed to grow over time and ride out periods of market volatility. While downturns can be uncomfortable, they are a normal part of the investment cycle. Our pension investment funds are well-diversified, with assets spread across various classes such as equities, bonds, cash, and alternative investments. This diversification helps cushion the impact of market swings and supports the fund’s ability to recover over time. Staying invested through these periods is essential to capturing future growth.
2. Staying invested matters
As a pension plan member, you’re already contributing regularly — and that’s a good thing. During market downturns, your contributions go further by buying more units at lower prices. This can enhance your long-term returns once markets recover.
3. Discipline is key
Reacting emotionally to market swings — like switching funds during a downturn — can lead to unintended consequences, such as locking in losses. Timing the market is extremely difficult and often results in missing out on the recovery. Instead, staying disciplined and focused on your long-term goals gives you the best chance for success.
4. Risk should align with your time horizon
If you're nearing retirement, it may make sense to review your investment mix and consider moving to lower-risk options that focus more on preserving capital. For most members, however, staying the course with your current strategy remains the best approach — especially if retirement is still years away.
If you're unsure whether your current investment mix suits your stage in life, consider reviewing your available pension fund options — and reach out to us for support.