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FEBRUARY 4, 2025

Staying the Course: How Market Volatility Affects Your Retirement Savings
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PERSONAL FINANCE


What's happening?

Recently, President Trump announced potential tariffs on most Canadian imports to the United States, which has led to some uncertainty in financial markets. If you’re wondering how this affects your retirement savings in PEPP, you’re not alone. Many investors react emotionally during market shifts, but history has shown that staying the course is often the best strategy.

The nature of investing

Financial markets are unpredictable by nature. While investors and businesses prefer certainty, market cycles include both ups and downs. Instead of making reactive decisions, successful investors focus on what they can control—like understanding their risk tolerance and choosing an investment strategy that fits their long-term goals.

How PEPP protects Your investments

PEPP is designed as an "all-weather" plan, meaning it isn’t built for just one type of market condition. It is actively managed by professionals who continuously monitor market trends and adjust portfolios to take advantage of opportunities and minimize risks. Here’s how PEPP helps safeguard your retirement savings:

  • Diversification: Your savings are spread across different types of investments, including stocks, bonds, and alternative assets, reducing exposure to any single market risk.
  • Professional Management: PEPP employs investment managers who focus on a multitude of different strategies and all regions of the world, making informed decisions to balance risk and return.
  • Regular Contributions: Market downturns can actually work in your favor if you’re still contributing. When markets decline, your regular contributions buy more investment units at a lower price, helping your long-term growth.

What should you do?

If you’re feeling concerned, remember that retirement investing is a long-term journey. Short-term market changes don’t determine your overall success. However, if you’re approaching retirement and need to start withdrawing funds, there are strategies to help minimize market volatility’s impact on your savings.

Need guidance?

Our Retirement Information Consultants (RICs) are here to help. Whether you need reassurance, want to understand your risk tolerance, or are considering adjustments, they can guide you. Book a free appointment today:

Toll-Free: 1-833-787-3170 (Monday to Friday, 8 a.m. to 5 p.m. SK)
Email: ric@plannera.ca

Market fluctuations are normal, and PEPP is built to withstand them. By sticking to a well-planned investment strategy and making informed decisions, you can stay confident in your financial future.