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
Avoid making rash decisions
Keep some cash set aside
Review your investment strategy
Seek guidance or advice
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 28.02.26, based on the FTSE 100 on a total returns basis with dividends reinvested. Chart does not take account of charges which would reduce the amounts shown
Annualised five-year returns
| (%) As at 28 Feb | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| FTSE 100 | 19.2 | 9.6 | 0.8 | 19.8 | 28.1 |
Past performance is not a reliable indicator of future returns.
Source: Refinitiv, total returns in local currency as at 28.02.26.
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.