With governments around the world imposing trade tariffs (tax on imported goods), we are seeing some uncertainty in the global financial markets. All pension schemes are significant investors in financial markets and, as a result, many will be seeing the impact of these recent changes on the value of their assets (the money that pension schemes have to pay your pension).

Pension schemes are long-term investors, putting money aside to pay pensions for people decades away from retirement. They plan for short-term changes in the value of their investments; and experience has shown that over the long term investment values generally increase. However, the Trustee continues to monitor investment performance, as well as the Company’s ability to continue to support the Scheme. They will make any changes as needed to secure members’ benefits for the long term.

QinetiQ Pension Scheme (QPS) assets

The QPS funds are invested in a wide range of asset classes. The recent uncertainty in financial markets has affected only relatively small parts of the QPS asset portfolio. Further, the diversified nature of the assets has limited the impact of movements in the global financial markets. The Trustee closely monitors the overall funding position of the Scheme and it has remained relatively stable over the recent period of financial market uncertainty. This has been reassuring to the Trustee.

Your pension remains secure

The Scheme is a defined benefit (DB) arrangement, which means you are entitled to a guaranteed income when you retire based on how long you have been a member of the Scheme and how much you earned while you were a member. So, while market conditions may influence the funding level of the Scheme, your individual pension benefits remain secure.

Need more help?

If you’re worried about your pension or the ongoing market turbulence, it can be helpful to speak with an independent financial adviser. You can find one on the MoneyHelper website.