If you have money in some type of investment or pension arrangement, you’ll almost certainly be invested in the stock market. When you see the value of your investments fall – or you’re worried about that happening – you might be tempted to put it all somewhere you think would be safer.
But that might be an expensive mistake – it would mean selling your investments at a loss and missing out on the chance to recover those losses when the market starts to rise again. Find out what you need to consider.
When to get financial advice
If you don’t need the money right now – or within the next few years – think very carefully before taking it out.
Get advice from a regulated financial adviser before doing anything. You’ll have to pay for this advice, but it might save you a lot of money and give you peace of mind in the long run.
If you do need the money now and have easily accessible cash savings that could be used instead, then consider that route first. Is this the ‘rainy day’ that you’ve been keeping that money for? If not, then check out other options first.
If you need the money to pay off debts or to keep afloat because your income has dropped (for example, due to the coronavirus pandemic), the government has a range of measures to offer support to people during this difficult time. We can help you navigate the different schemes.
Join our Facebook group
Join our private Coronavirus and your Money Facebook group for money news and updates as soon as we get them. It’s also a place to ask money questions, share worries and help others out.
Beware of investment scams
If you decide to leave your investments where they are, it’s still a good idea to review the funds your money is invested in. Do they match the amount of risk you’re comfortable with? Do you even know where they’re invested and how risky the funds are? If the answer to either of those questions is ‘no’, it’s important to get some professional help.
Be very careful of scams. For example, if you’re under 55 and anyone tries to tell you that you can take a loan from your pension to use for your personal needs, don’t believe them – you can’t.
If you take money out of your pension before the age of 55, you’ll end up paying huge fees to the company who suggested it and face a large tax bill. You might even lose what’s left.
Even if you’re over 55, don’t automatically think that using money from your pension to pay debts or bills is the right thing to do. There is something else you can do that might work better for you in the long run. Again, these are decisions that might be best made with the help of a financial adviser.
What to do next if you’re worried about your investments or pensions
If you’re worried, don’t suffer in silence. Get some help.
Got a pensions question? Use our webchat
If you need more information, you can use our webchat or call us on 0800 011 3797. One of our pension specialists will be happy to answer your questions. Our help is always free.
Open Mondays, Wednesdays and Fridays, 8.45am to 6:20pm, and Tuesdays and Thursdays, 9am to 6.20pm. Closed on public holidays.
Consider getting regulated financial advice. Regulated financial advisers can give you advice on what to do. But make sure they’re regulated, as that gives you more protection if something going wrong.
Review the funds you’re invested in. Make sure they match how much risk you’re comfortable with, your investment objectives and the length of time you have before you will need access to your money.
It’s important not to interact with anyone who contacts you out of the blue and asks for any personal or bank details. Only deal with firms or organisations you’ve researched and which you trust. Reputable companies don’t cold call people.
