Understanding market volatility and pensions

Recent geopolitical events have created increased volatility in global financial markets. This can naturally raise questions about what this means for pension savings. This page provides an update on current events for all our customers, how markets have responded, and how People’s Pension is structured to manage periods of uncertainty.

Understanding the impact of global events

On 28 February, the US and Israeli governments commenced military action in Iran. Our thoughts are with all those affected, including civilians and those now stranded across parts of the Middle East.

While People’s Pension has very limited direct investment exposure to the Middle East and none in Iran, global stock markets have reacted to recent developments. This has caused the value of some companies around the world to fall. When markets drop, pensions like yours that invest in them may also fall in value for a while. Short-term market movements of this kind are normal and expected. They do not alter the long-term strategy behind the scheme.

People’s Pension’s investment strategy is designed to navigate through uncertain and volatile times by being globally diversified. This diversification helps make the scheme more resilient during periods of uncertainty.

Performance is built over years, not days

Although no-one likes to see the value of their pension fall in the short term, pensions are designed to be long-term investments. To the end of February 2026, our main fund — the Global Investments (up to 85% shares) fund — has delivered:

• 51.0%¹ growth over 5 years
• 143.6%¹ growth over 10 years

¹Past performance isn’t necessarily a guide to how your pension may grow in the future.

To illustrate:

• £10,000 invested five years ago would have grown to around £15,100
• £10,000 invested ten years ago would have grown to around £24,360

These returns include multiple periods of market turbulence, highlighting the value of staying invested over the long term.

Our funds are managed by reputable investment managers and overseen by an experienced internal investment team who monitor risk and performance in all market conditions.

What this means for pension savings

During times of uncertainty, it is helpful to keep in mind that:

• It’s normal for markets to move up and down in the short term.
• Pensions are invested for the long term, not based on daily market movements.
• Savers’ money is spread across different types of investments, helping to reduce the impact of any single event.

These longstanding principles are designed to help keep pension savings on track over time, even when the news feels uncertain.

We’re here to keep you informed

We’ll continue to monitor the situation and are committed to providing clear information and reassurance during this period of market volatility.