Understanding the impact of current market conditions on your pension
You’ll have seen the recent news about the impact of US tariffs and how they could affect savings and investments. And you might be wondering how this could impact your pension savings.
We’d like to reassure you that although there has been some turbulence in the markets – your GE HealthCare Pension Plan (‘the Plan’) is a defined benefit pension, which means that your pension benefits are not directly impacted by short-term market volatility.
A defined benefit pension is calculated using your final salary and retirement factors, not by how markets perform and the Plan is legally required to pay these benefits. The Plan is managed with a long-term view to make sure it can continue to meet its promises.
The Plan is responsible for meeting the costs of your pension benefits and has a robust low risk investment strategy to achieve this. The investment strategy is designed – broadly speaking – to make sure the value of the Plan’s assets change in line with the value of the pension liabilities.
However, if you have other defined contribution pensions elsewhere, you may see the value of these fluctuating. It’s important to remember that pension savings are a long-term investment and it’s normal for these types of pension savings to fall occasionally in the short-term, as well as rise. It’s always worth checking in on your pension savings and getting in touch with the administrator if you have any questions.
If you’re looking to retire soon you may wish to speak to an independent financial adviser, who can discuss your personal situation with you. To give you a helping hand, the Trustee will pay for you to have one round of financial advice from Origen Financial Services (subject to eligibility). While Origen has been appointed by the Trustee, they will provide you with impartial advice based on your personal circumstances. You can find out more in the Retirement options section of the Plan website.
Alternatively, you can also choose to use your own independent financial adviser. You will need to pay for this yourself. You can find a list of registered advisers on the MoneyHelper website, https://www.moneyhelper.org.uk.
The current market turbulence is likely to increase the risk of pension scams, please read our article ‘can you spot a scammer’ to find out how you can keep your pension safe from scams.