The coronavirus pandemic that has ravaged the world with unprecedented force, has had profound effects on the value of assets. No agencies or individuals have been spared from the negative effects of this crisis, and certainly not the pension funds, which have dropped sharply in value.
This does not necessarily mean that members will experience losses, which will be effective only for those who will have to sell their assets to retire, the majority of whom are in more conservative funds with lower volatility. Those with a knee-jerk response to the crisis, who opt out of the funds with higher risk levels, will also experience losses.
It is true that fund assets have declined in value, but they are still owned by members and, given their stability, should begin to recover their value as soon as this crisis is over, as has occurred in all past crises.
As FIAP, we call on all members to stay calm and collected, avoiding hasty decisions to opt out of funds in a context of such high uncertainty and complexity as the one we are currently experiencing. We recommend that you bear in mind the long-term horizon of pension savings, avoiding losses that could lead to the obtainment of lower pensions in the future.
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