How safe is my pension?

I’ve heard about the fall in global stock market values and wondered if my pension is safe.

Yes, your local government pension is safe

You may have seen many articles in the media about the fall in share prices around the world, as companies struggle to cope with the impact of the coronavirus and wondered just how secure your pension from the Avon Pension Fund is.

The Avon Pension Fund is part of the Local Government Pension Scheme (LGPS). The LGPS is a statutory defined benefit scheme which means that your pension will continue to be worked out using a set formula and it is guaranteed by Government. LGPS is funded by pension contributions from members and scheme employers

The Avon Pension Fund reduces risk by spreading its investments across a wide number of different types of assets all over the world, including shares or equities, property, government bonds and company bonds. This means that if the value of one type of asset should fall (such as some equities in the current market), then the other investments will protect the Fund.

The Fund has experienced economic downturns in the past and a long-term view must be taken of investment returns.

Despite the uncertainty you may hear from the media concerning global markets, you should not be unduly concerned about your local government pension from Avon Pension Fund.

It is as secure a pension as it’s possible to have.

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