The recent events in the global financial markets are unprecedented and uniquely challenging. Each day has brought news of further global financial turbulence.
EasyBuild Stakeholder Pension and B&CE Contracted - Out Pension Schemes bear the risks of any downturn in investment performance. Dependent of course on the time at which the individual selects to take the pension and the fund selected, any market fall may be reflected in a reduced fund available to purchase a pension annuity. The EasyBuild Cash fund is deposited in a variety of banks and is therefore low risk.
EasyBuild Managed Fund is a medium risk fund that aims to provide investment growth over the medium to long term. It invests in a mix of company shares, loans to the government or companies, and cash deposits. However, it is subject to short-term changes and the price of units will go up or down in accordance with market conditions.
Pensions are long term investment vehicles and those worried about pension investment during this period of market uncertainty should be reminded of their long term nature. The policyholder should not be tempted to make any quick decisions without rational consideration being given to the longer term objective.
Any changes made on asset allocation should be made for the long term. Independent financial advice should always be sought.
EasyBuild policyholders within 5 years of their selected retirement age*, who have default lifestyling in place, will have a proportion of their pension fund moved automatically each year from the medium risk Managed Fund into the low risk Cash Fund. As a result, it will reduce exposure to stock market fluctuations in the years immediately prior to retirement.
* or aged 65 years if they haven’t informed B&CE of their selected retirement age
The current financial volatility may be with us for some time to come. However, we know that downturns are an inevitable part of market cycles followed, of course, by recovery. The real challenge to the investor is one of timing.
The B&CE group continues to maintain strong reserves which will enable it to meet all its financial commitments. The reserves of the group are held in a mixture of investments and are subject to constant monitoring
We remain as committed as ever to acting in your best interests at all times.