You will not have failed to notice that there has been a great deal of volatility in the financial markets. The spread of the coronavirus has led to radical measures being imposed throughout the world. The whole economy is feeling the effects of this. These measures, and uncertainty regarding the further effects of the coronavirus, are causing huge fluctuations in the financial markets. How will this affect your pension?
Besides the human aspect that we are all currently experiencing and the associated fear and uncertainty, we are seeing negative sentiment in the economy and that business activity has come to a temporary standstill. It is important that governments and central banks recognise this and support consumers and businesses so they can pull through. In addition to monetary measures from the European Central Bank, governments are boosting the economy with stimulative measures at national level. In the past, such measures have helped to stabilise the financial markets in due course.
What does this mean for your pension?