Q: Will the current conflict in Ukraine affect the value of my pension savings?
A: The situation is changing on a day-to-day basis. It is therefore difficult to provide a clear picture of potential impacts at this stage, but we are continually monitoring how your investment funds are performing.
What we do know is that volatility (movements up and down in the value of your pension savings) has increased over this period, and you may therefore see fluctuations in the savings you have with Smart Pension.
We don’t currently think that this is a cause for concern – your pension is a long-term investment, and we believe that these fluctuations should only be temporary whilst this crisis unfolds. We are continually monitoring the situation, including talking to the investment managers we use to manage your pension pot.
Q: How exposed is my Smart Pension account to Russia?
A: If, like most scheme members, you are invested in the default investment arrangement (which will be the case if, for example, you haven't made an active decision on where to invest your money) your Smart Pension savings will have very minimal exposure to Russia (through investment in Russian companies and bonds).
If you are invested in the self-select funds, in particular any funds which invest in emerging markets, the exposure may be slightly higher, but still at a low level overall.
Q: Should I move my money to different investment funds?
A: Whilst we cannot provide financial advice, it's worth remembering that your pension is a long-term investment and we wouldn't recommend any changes based on short-term events.
Q: Are there any issues with me taking my money out, such as if I am retiring shortly?
A: We are not aware of any issues with moving money, whether between different funds or into or out of your pension plan.
Q: How are the trustees addressing concerns about the conflict?
A: The scheme is overseen by an independent trustee board. We are continually monitoring the situation with the trustee, to ensure that the scheme continues to be as robust as possible. As part of this we are monitoring and reviewing our exposure to both Russia and Ukraine, and actively engaging with our investment managers to make clear our view of the need to avoid and divest from Russian assets.
Get in touch
If you have any further questions, you can get in touch with us by our contact us form or by calling us on 0333 666 2626.