Should I Change My Pension Plans When Markets Are Unsettled?

When headlines are full of stories about tariffs, elections, or global conflicts, it’s natural to wonder what it all means for your pension. Political moves – like the reintroduction of tariffs by former President Trump in April 2025 – sent shockwaves through global stock markets. But does this mean you should be making changes to your retirement plan?

In short: probably not.

Here’s why a calm, long-term approach often wins the day.

Markets wobble. That’s normal.

Financial markets don’t like uncertainty, and politics is one of the biggest sources of it. Whether it’s tariffs, trade talks, or elections, you’ll often see a short-term reaction. But market ups and downs are part of the journey. They’ve happened before, and they’ll happen again.

If your pension is invested in the stock market – as most are – you may see fluctuations in value. That’s completely normal. Over the long term, markets have historically recovered from these dips and continued to grow.

Pensions are long-term by design

Your pension is designed to grow steadily over years, even decades. Trying to time the market – jumping in or out based on the latest headlines – can do more harm than good. In fact, missing just a few of the market’s best days (which often follow the worst ones) can seriously dent your long-term returns.

If you’re decades from retirement, this volatility is part of the process of growing your money. If you’re closer to retirement, your pension might already be invested in a way that helps cushion some of this risk.

Focus on your plan, not the panic

It’s easy to feel uneasy during market downturns. But a good financial plan takes this into account. At Chesterton House, we don’t just look at where your money is invested — we look at your whole financial picture, including your values, goals, and what a great life looks like for you.

That means building a plan that’s resilient, with enough flexibility to ride out the bumps without derailing your future.

When to review your pension

While reacting to short-term market movements isn’t usually helpful, there are times when it makes sense to review your pension:

• Life changes – such as changing jobs, getting married, or approaching retirement

• Your goals have shifted – perhaps you’re aiming for an earlier retirement or want to travel more

• You’re unsure about your current plan – and want to understand how it supports the life you want

The bottom line?

Big headlines can cause short-term noise, but your pension is a long-term investment. The key is having a plan you believe in — one that’s built around you, not the latest market news.

If you’re worried or simply want a second opinion, we’re here to help. A short conversation can bring peace of mind and ensure you’re still on the right track.

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FAQs: Stock Market Swings & Your Retirement Plan

💬 My pension value has dropped recently — should I be worried?

Not necessarily. Market dips are normal and usually short-lived. Your pension is designed for the long term, and history shows markets tend to recover over time. The key is to stay focused on your overall plan.

💬 Should I move my pension to cash or something safer when markets are volatile?

It might feel safer, but moving to cash during a downturn can lock in losses and mean missing out on the recovery. It’s usually better to stay invested unless your circumstances or goals have genuinely changed.

💬 Why does my pension go up and down in the first place?

Most pensions are invested in the stock market, which reacts to global events like elections, trade deals, or economic news. These ups and downs are part of the process and are factored into long-term planning.

💬 What if I’m close to retirement — should I be doing anything differently?

If you’re within a few years of retiring, your pension may already be invested more cautiously to help reduce the impact of market swings. But it’s always worth checking your plan to make sure it still matches your needs.

💬 When should I review my pension?

Good times to review your pension include:

• Major life changes (new job, marriage, children, divorce)

• A shift in your retirement goals

• If you’re feeling unsure about how your money is working for you
  We’re always happy to talk through your options and help make sure everything still lines up with your long-term plans.

💬 What if I’m feeling anxious about my investments?

That’s completely normal — especially with the headlines we’re seeing. But you don’t have to go it alone. Talking it through with a financial planner can help put things in perspective and give you clarity about your next steps.

💬 What makes Chesterton House different?

We focus on Values-Based Financial Planning. That means we don’t just look at your money — we look at your life, your goals, and what really matters to you. Then we help build a financial plan that supports that vision, even through the ups and downs.