Pound vs dollar: How fall impacts pensions as retirees on fixed income ‘hit hardest’ | Personal Finance | Finance
“Money that is invested might see a recovering market, so if it’s possible, prioritise using rainy day funds or savings before counting your losses on your investments – these are the key takeaways navigating market volatility.”
Although it might seem counterproductive, contributing to investments when the markets are low can be cost-effective, according to Mr Savova.
He said: “Adding £100 when markets are down will usually buy you more units than when the markets are up, and when unit prices are more expensive.
“It’s normal for and expected for pensions to go up and down, and it’s expected that they will recover and grow further in the future.”
However, for Britons investing pensions in a portfolio, there are certain steps Britons can take to mitigate the impacts of the drop in currency value.
Ms Morrissey said: “Pensions should be invested in a portfolio that’s well diversified in terms of geography and sector.
