Staying the course: why now is not the time to panic

In recent years, investors have had little respite from unsettling headlines. From the Covid pandemic to inflationary shocks, geopolitical tensions, and market volatility, it can feel as though we are moving from one crisis to the next without a break in between.

For those newly retired or planning significant life changes, the constant stream of negative news can be particularly challenging. Many people are asking questions such as “Is it still safe to withdraw from my pension?” or “Should I be making big decisions when everything feels so uncertain?”

These are natural, but it’s important to put them in context.

There is always something

There has never been a “quiet” decade in markets. Every period has brought its own worries - some that seemed world-defining at the time. Yet markets have continued to grow over the long term.

The chart below illustrates this point. Despite countless setbacks over the past 50 years - from oil crises to financial crashes, global conflicts, and political upheavals - the long-term trajectory of global markets has remained upward.

It’s a reminder that there is always something to worry about. But reacting to short-term uncertainty can do more harm than good when it comes to long-term financial planning.

The importance of perspective

The financial media is designed to grab attention. Every headline, every alert on your phone, is built to elicit a reaction - often one of fear or urgency. But personal finance should be approached differently. It should be rooted in your goals, values, and the life you want to lead.

Your financial plan was built with care and flexibility, which means it’s designed to withstand periods like this. The market will always fluctuate. This isn’t a flaw in the system; it’s a feature.

What matters more than what the market is doing this month is whether your plan still supports the life you want to live.

Give yourself the green light

Many people feel an underlying discomfort about spending money they’ve worked hard to save, particularly in uncertain times. It can feel somehow inappropriate to book a holiday, enjoy retirement, or spend confidently when the wider world feels so precarious.

But financial planning isn’t just about protecting your money, it’s about giving you the confidence to use it well.

If your plan shows that you can afford to travel, to stop working, or to treat yourself to that long-postponed first-class ticket to Thailand, then those choices are not irresponsible, they’re what the plan was built for.

Of course, plans should evolve. Your needs may change, your priorities may shift, or new events (such as an inheritance or change in health) may alter the picture. But that’s why we plan - to ensure you have choices, not just numbers. If the markets dip, we adjust. If you want to spend more now and less later, we flex. It’s not about sticking rigidly to a spreadsheet, it’s about living life with clarity and confidence.

You’re not alone

If the headlines are making you uneasy, you’re not alone. The urge to react - to do something at least - is a completely natural human response. When things feel uncertain, we seek control, and that often means making changes, even if they aren’t necessary or helpful in the long term.

The best thing to do right now, counterintuitive as it might be, is to sit tight, and do nothing. Take a deep breath and remember it’s all happened before.

It's scary and counter intuitive, but it’s the best course of action.

In fact this is precisely where financial planning comes in. Part of my role is to provide perspective, not just analysis, to help you distinguish between decisions driven by your goals and those driven by anxiety. I can also act as a sounding board, someone to remind you of the bigger picture when it’s hard to see it yourself.

So if you’re feeling uncertain try not to let that noise cloud your judgment or rob you of the opportunity to enjoy what you’ve achieved. Despite how it feels, this is not a uniquely difficult time. It’s just this month’s challenge in the long, ongoing story of the markets. And you’re still exactly where you need to be.

Please do get in touch if you’d like to discuss this, I’d love to help to put your mind at rest.