Covid-19 Coronavirus Trustee message - share price volatility (for members with DC funds) and a reminder about pension scammers
Looking after your pension is the Trustee’s top priority
Share prices and Covid-19 affect: The spread of Covid-19 has contributed to significant volatility in share prices and other investments which has meant, for many people, a reduction in the value of their pension pot.
Volatility can be expected for some time to come and this can be worrying, especially for less experienced investors. However, investments such as pensions are considered long term and history suggests that, after markets go down, they will go back up again at some point.
Your DC Plan administrator, Aegon, has put together some Frequently Asked Questions on Covid-19 and market volatility which may help you. Just log into your TargetPlan account at Aegon https://lwp.aegon.co.uk/targetplanUI/login and follow the links to the Covid-19 FAQs. If you’re unsure how to proceed in these difficult times, you might like to get professional financial advice. If you haven’t got a financial adviser, you can find a list of advisers at unbiased.co.uk.
Pension scamming - BE AWARE that you could be targeted by pension scammers – a pension scam could result in you losing all your pension savings: There are new trends in fraud related to the Covid-19 pandemic. Scammers are known to be targeting members with pension pots of ALL sizes. What should you do if someone contacts you about your pension savings?
- Don’t give out your personal information if contacted unexpectedly;
- Don’t be rushed into anything, take time to think;
- Don’t sign anything unless you fully understand what you're signing up to; and
- Don’t let anyone into your house unless you’re sure they're genuine.
- Do research any firm that contacts you;
- Do check the FCA warning list on the Financial Services Register (https://www.register.fca.org.uk);
- Do get yourself regulated financial advice;
- Do take your time over financial decisions, and
- Do assess the tax implication of any decision you make.
Please take a look at the Trustee message of 28 April 2020 about potential pension scamming and which provides links to websites that can assist with protecting yourself from scams. The Pensions Regulator has produced a guide for members entitled “Covid-19 and your pension – where to get help” which explains how pensions are protected and how to avoid scams.
Please think carefully before you consider transferring your pension. You need to be very wary of potential scams. Search ScamSmart which has specific guidance relating to Covid-19. https://www.fca.org.uk/scamsmart/how-avoid-pension-scams https://www.thepensionsregulator.gov.uk/en/pension-scams
Link to: Message of 28/04/20 – Potential pension scamming and links to websites that can assist with protecting yourself from scams.
Link to: Message of 14/04/20 – FAQs on tax year end.
Link to: Message March 2020 – Trustee assurance and prioritization.