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Learn about volatility
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What to do when volatility strikes

Volatility describes periods of unpredictable, and sometimes sharp, market rises and falls. It's natural, but unnerving. Let us guide you.

Whatever you do, don't panic

The value of investments rise and fall for all sorts of reasons - interest rate hikes, geopolitical changes, company announcements... the list goes on. And while these movements - otherwise known as volatility - might make you feel uncomfortable, they're part and parcel of investing.

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Stay focused on the long term

Markets can - and have - recovered over time (although there are no guarantees). Look at long term projections instead of current performance.

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Avoid making rash decisions

Withdrawing money now in the hope of minimising losses might mean missing out on any potential future gains.

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Keep some cash set aside

Make sure you have money set aside for emergencies. This way you won't be forced to withdraw from your Plan, which is designed to prepare your after work life.

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Review your investment strategy

If your retirement savings aren't in the default strategy, check your own strategy is still in line with your goals and objectives.

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Seek guidance or advice

If you need more reassurance on what to do when volatility strikes, you can always talk to a financial adviser.

Stock markets have overcome setbacks before

Investing is for the long term. Setbacks happen, but history shows that markets have recovered before. Here's what happened if you invested £100 each month in the Financial Times Stock Exchange (FTSE) 100 Index - and stayed invested - since January 1986.

Source: Bloomberg, 29.03.24 based on the FTSE 100 on a total returns basis with dividends reinvested. The FTSE 100 is the benchmark index of the UK stock market, tracking the permanence of the 100 largest companies listed on the London Stock Exchange.

Five-year performance table

(%) As at 31 Dec 2019 2020 2021 2022 2023
FTSE 100 17.3 -11.6 18.4 4.7 7.9

Past performance is not a reliable indicator of future returns.

Source: Refinitiv, total returns in local currency as at 31.12.23.

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Take care of your Plan. And it will take care of you.

When the value of your investments falls or you're feeling financially squeezed (whether that's due to the cost-of-living crisis, you're saving for a house, having a baby or thinking about changing career), it can be tempting to lower your payments. Or worse, stop them altogether.

But if you're going to be able to afford the retirement you want, you might want to think again. Your future self will thank you for keeping at it in the long run.

Learn more on how to cope when your finances are stretched

This information is not a personal recommendation for any particular investment, you are responsible for deciding whether an investment is suitable for you. In doing so, please remember that past performance is not a guide to future performance, the performance of funds is not guaranteed and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. You should regularly review your investment objectives and choices and if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. FIL Life Insurance (Ireland) DAC is a Designated Activity Company limited by shares and registered in Ireland. Registered Office: Georges Quay House, 43 Townsend Street, Dublin 2, D02 VK65, Ireland. Company No. 513819. Directors: Brendan McCarthy, Rosemary Commons, Gilles Roy (French), Helena Cooney and Adam Pearman (British). FIL Life Insurance (Ireland) DAC is regulated by the Central Bank of Ireland.

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