Concerned about your pension? Don’t panic

There have been two key themes impacting pension investments throughout 2022: Inflation and the cost-of-living crisis. As the world reopened following the Covid-19 lockdowns and demand for goods and services returned, there were already concerns about rising prices – also known as inflation. Rising prices have further been exacerbated by supply chain issues, largely due to Russia’s invasion of Ukraine.

In order to manage the increased inflationary pressure, the central bank has increased interest rates. This, coupled with the political turmoil and recent mini budget, has all had a strong negative impact on the value of sterling and bond assets, and as a result may affect the value of your pension savings.

However, while we understand this recent turbulence can be worrying, your pension remains safe.

To find out how Mercer structures its pension investments to manage the risks caused by major events, we caught up with Investment Expert, Alexandra Tebbutt at Mercer.