Pension Perspectives online at www.peba.gov.sk.ca

Spring 2019

Market volatility and your pension

Feeling uneasy about the markets recently? You’re not alone. Over the last month or so, the markets have seen a lot of ups and downs – somewhat related to the Coronavirus or COVID-19 as it is currently labelled. While most investment experts tell us to relax and stay the course, it’s easier said than done.

Many investors make emotional decisions, rather than rational ones, during times of stress. Whether you are years from retirement, close to retirement or in retirement this is dangerous because our attitude toward risk may change based on our emotional state.

Here’s a few tips that will may help guide you during this period of market volatility:

Look at the big picture – Instead of reacting to what has already happened, try to focus on the future. Keep the market condition in perspective and remember saving for retirement and through retirement is a long-term goal.

Focus on the long term – While it’s hard to focus on the long term when markets are down, recall why you originally selected your investment option. Investments fluctuate on a day-to-day basis. But, the longer you stay in the market, the less the fluctuation affects the overall performance of your fund.

Diversify – PEPP looks after this for you. All of PEPP’s asset allocation funds are invested in a well-diversified portfolio of asset classes and investment managers. Diversification reduces the overall risk of your asset allocation fund because the positive performance of some investments off-sets the negative performance of others.

Understand your investor profile – We all have different retirement goals and different time frames for achieving them. Complete the My PEPP Investor Profile on our website at www.peba.gov.sk.ca/pensions/pepp/home.html – the profile measures your tolerance for risk and analyzes your investment style to see what type of investor you are.

Look before you leap – Making hasty changes to your investments based on short-term market fluctuations can have long-term consequences. If you are considering changing your PEPP investment option, review your investment strategy and investor profile.

Talk to one of our professional Certified finanCial Planner® professionals – Always feel free to call PEPP at 1-877-275-7377 with any questions for our Retirement Information Consultants who are also Certified finanCial Planner® professionals. They can review your investment portfolio with you and provide you with investment information that can help you make good informed decisions about your retirement planning and educate you on ways to manage your PEPP account during market volatility, today and in retirement. Investing doesn’t stop at retirement.

Stay informed – Click on the COVID-19 Update to PEPP Members symbol on our website. This is our communication centre for all your pension updates, process changes and news related to the pandemic.

If you have questions about COVID-19, we encourage you to visit the page dedicated to this on the Government of Saskatchewan website at: https:/www.saskatchewan.ca/coronavirus

perspectives pension

Spring 2020

Public Employees Pension Planc/o - Public Employees Benefits Agency1000 - 1801 Hamilton StreetRegina SK S4P 4W3In Regina: 306.787.5442Toll free: 877.275.7377

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www.peba.gov.sk.caThis newsletter provides general information about the Public Employees Pension Plan and its operation. It does not replace or supercede the legislation governing the Plan.

As we continue to monitor Coronavirus (COVID-19) developments closely, the health and well-being of our members and staff is of utmost importance to us. Social distancing is advised by the Province as one thing we can all do to help protect ourselves and help contain the spread of the COVID-19 virus.

As per the pandemic guidelines:

• we have postponed all scheduled member workshops and presentations; and

• all member consultations will be done by phone. We realize personal consultations are important to our members, however, we will not be available for in-person visits.

As this pandemic evolves and the guidelines change, there may be additional changes to how we connect with members. Please check the website frequently for any updates.

Otherwise it is business as usual - contributions are being invested, pension payments are being processed and we are answering hundreds of phone calls each day.

We are here to help. Please contact us if you have any questions. We recognize that this may be a prolonged effort, and want you to be fully aware of our commitment to continue serving you. Thank you for your understanding.

COVID-19 Update to

PEPP MembersWorkshops postponed and no in-person visits

The current investment markets are very concerning to everyone, especially for those who are close to (within a year or two), or already in retirement.

Close to retirement

While we eagerly anticipate the markets rebounding those who are about to retire may have questions. “Do I need to re-evaluate my retirement plan? Do I need to work a bit longer or cut back on the amount I think I need to have the retirement I desire?” Perhaps all of the above, but try not to panic. Past history shows that people who stay invested during these times end up ahead because when the markets start to recover they are able to take advantage of the rebound.

Already in retirement

We anticipate retirement lasting about 30 years, so thinking long-term may help you get through this less emotionally. Staying invested through retirement allows you to hopefully stay ahead of inflation and take advantage of the market rebound. Investment markets will always fluctuate but generally over years typically go up. Perhaps moving a portion of your money to a less volatile investment could help with protecting income; but moving your entire investment may erode your earning power. You could lower your risk by choosing a PEPP investment option that holds more fixed income which may not have as low of lows during this type of market situation. Lowering (if possible) the amount you are withdrawing during this time, may also help your pension account last longer.

Talk to one of our Certified finanCial Planner® professionals at 1-877-275-7377. They can help by providing you with information to make the right choices.

For those close to, or already in, retirement