During times of crises (like we are experiencing now), investment market performance and investment markets are highly volatile, and your retirement fund savings are likely to be lower than before. These losses are however simply what is called “paper losses” and you should not become spooked by it. Saving for retirement is a long-term matter – there will be good times and bad. We share an article by Sanlam.
It is important to remember that trustees of retirement funds construct the fund’s investment strategies across a wide range of asset classes, so that members can benefit from having a diversified allocation to different investment portfolios.
What should I do now?
Do not be tempted to make hasty changes to your investment portfolios. The risk is that you will miss out on any market recovery, which will have a devastating effect on your savings over the long term.
What you should be doing now is to focus on the responsible things such as:
- Adapting your budget to ensure it is still appropriate – tighten your belt where you can.
- Ensuring your nominated beneficiaries are up to date – you may use the “Sanlam MyRetirement” app.
- Ensuring your risk benefits remain appropriate – now is not the time to cancel your insurance.
- Making sure you have a long-term investment strategy and goal and stick to it.
- Speaking to a financial adviser who will have a holistic view of your financial position.
- Visit SANLAM to read the full article