Navigating Pension Performance in a Changing Market

As we come to the end of a year that has been tough on pensions, investors are looking for safe havens to protect their investments. Economic uncertainty, political upheaval, and fluctuations in the stock market have left many feeling unsure about where to put their money. In this article, we will explore a few safe havens that investors can consider for their investments amidst these challenging times. From gold to property to alternative investments, we’ll discuss the pros and cons of each and help you identify the best options to secure your financial future.


Pension performance was extremely poor last year, particularly for retirees with Approved Retirement Funds (ARFs). Some investment funds experienced as much as a 15% drop, which, combined with the 4-5% annual payment, could result in a 20% decrease in savings. Conservative investors who maintained a low-risk setting found that their portfolio was dominated by bonds, which performed the worst among asset classes, with some maturities experiencing losses of up to 30%. While those who are nearing retirement may recover over time, low-risk funds still contain an excessive number of bonds, which are likely to underperform again this year due to rising interest rates. Annuities are becoming popular again with interest rates rising, and pensioners can choose between shifting to an ARF and continuing to invest with the intention of drawing income for the remainder of their lives, or buying an annuity, which entails transferring their fund to a life company that calculates an annual pension that they will receive until they die. The current market volatility is concerning to many investors, but lowering one’s risk at this time is unwise. The absence of Central Bank support since the last financial crisis has resulted in greater market instability. The economy is experiencing cold turkey as a result of the withdrawal of ultra-low interest rates and money printing. By investing in alternative assets and staying away from overvalued equities and bonds, investors can better position their portfolios to weather the storm.


In conclusion, finding safe havens for your investment can be a daunting task, especially after a tough year for pensions. However, there are few options available that can provide some level of security and stability, including low-cost index funds, real estate investment trusts, and dividend-paying stocks. It’s essential to do your research and consult with a financial advisor to make informed decisions and safeguard your investment portfolio. Remember, investing always comes with some degree of risk, but by taking a long-term approach and diversifying your investments, you can safeguard your financial future and achieve your investment goals.