The Co-op's DB pension schemes (Pace DB, Somerfield and United) are well-protected from risks relating to inflation and interest rates. The trustees have managed the scheme’s investments to cope with the extreme volatility seen in the financial markets over recent days. Members' pensions remain protected, and supported by the pension schemes' sponsoring employers.
Members in Pace DC may notice that as bond prices have fallen, investment in the Pace Pre-Retirement funds in particular will have fallen in value. However, these funds aim to follow the costs of buying an annuity, which will also have fallen. The Trustee and its advisors are closely monitoring market movements. We know members may have concerns over falls in investment markets, but it’s important to remember that the value of individual pension pots will go up and down from time to time, and Pace DC members should remember to take a long-term view.
Legal & General have set up a response hub for DC pension scheme investors with further information, which is available here.