What to do when volatility strikes
During times of market volatility, you might notice a dip in your retirement savings. Although natural, it can be unnerving and cause you to worry about how your retirement savings is invested. It's important not to panic as though uncomfortable, this is a normal part of long-term investing.
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.
Avoid making rash decisions
Withdrawing money now in the hope of minimising losses might mean missing out on any potential future gains.
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.
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.
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: Refinitiv, to 30.09.25 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. This is for illustration purpose only and you can't directly invest in indices.
Annualised five-year returns
| (%) As at 30 Sept | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| FTSE 100 | 25.6 | 0.9 | 14.7 | 12.4 | 17.5 |
Past performance is not a reliable indicator of future returns.
Source: Refinitiv, total returns in local currency as at 30.09.25.
When the value of your investments fall or you're feeling financially squeezed (whether that's due to rising cost of living, changes to the political landscape, or you're thinking about making big changes to your family life), 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.
News & insights
How much should I save each year for retirement
The question of how much you should save is key to ensuring you maintain your lifestyle in retirement. Read our guidelines now.
How rising prices could affect your retirement
Here is how inflation is having an impact on retirement plans in the short and long term, and some helpful tips on what you can do about it.
Feel better about your finances
From budgeting to setting up goals for your future, taking case of your money can have a big impact on your wellbeing.