The spread of COVID-19 has contributed to a significant fall in share prices which has meant, for many members, a reduction in the value of your pension pot. This can be worrying but needs to be seen in the context of long-term returns. It’s to be expected that the value of individual pension pots will go up and down from time to time and it’s important to take a long-term view. The ITB Pension Funds lifestyle options aim to protect members pots from falls in share prices to a certain extent, by switching assets to less risky investments as each member comes closer to retirement. See the latest DC Section Newsletter for details of how the lifestyle options’ assets are allocated.
For comprehensive information about what DC Section members should consider when assessing their pension pots in the light of the impact of COVID-19 see L&G, the DC Section investment manager’s website at https://www.legalandgeneral.com/workplace/campaigns/covid-19/.