We remain cautiously optimistic about the outlook for stock markets across 2023. Find out what our outlook could mean for your pension savings in our short film.

Market volatility and pensions

It’s normal for the value of your pension to go up and down over the short term. This is because your pension is likely to be invested in company shares and other stock market investments that also carry risk. Unlike money held in a bank account, stock market investments tend to go through periods of upwards and downwards price movements, including sudden changes over the short term. This is known as volatility. Investment is all about making your money work for you and involves taking some risk and accepting some volatility.

Various factors can affect the prices of stock market investments. For example, in recent months, issues like the state of the global economy, rising prices of goods and services, international political developments and the continuing impact of Covid-19 have all contributed to stock market volatility.

One thing to keep in mind is that your pension is a longer-term investment, which is likely to be held over many years. So, while short-term changes can be unsettling, it's important not to panic. Maintaining a longer-term view can help you make better investment decisions.

Past performance is not a reliable indicator of future results. However stock market investments have historically tended to outperform money held in savings accounts over the longer term.

If you are reviewing your pension investments, we would strongly suggest discussing any potential changes with your financial adviser. We can help you find an adviser if you don’t already have one. Advisers will normally charge for advice.

Watch our guides to stock market volatility

What is stock market volatility?

Learn more about what makes investment values go up and down. We’ll explain why market volatility is normal, and how long-term investing works.

Learn more about how to diversify and protect your investment

Take a few minutes to learn how investing across different asset types can be a good way to reduce the overall level of investment risk to your money.

Investment news

Keep up to date with the latest market updates and investment trends. Our experts share their views on the latest investment topics.



We strongly recommend that you get advice if you’re concerned about stock market conditions and how they’re affecting your investment, or if you’re considering making any changes to your investment.

If you want to know what you're invested in, and how current conditions are affecting your account, please speak to your financial adviser. Advisers will normally charge for advice.