January 31, 2023

You might have meticulously constructed your SIPP asset allocation to make sure that your portfolio is safe from the market rotation effect. However, there is no SIPP, even the most rigorous one, that is completely resistant to stock market fluctuation. In this case, preventing financial loss is essential for survival during a market crash. Having a low cost SIPP might be the right alternative to lessen the risk of financial loss, as it enables you to pick your own investment choice and diversify it instead of following the SIPP company’s advice. In this article, you will find several tips to keep your SIPP on track.

  • Carefully review your portfolio

It might be impossible for you to foresee the future, but it is always better to be safe than sorry. You can reexamine your asset to make sure that you have put your money in the right place. You can discuss your asset allocation with a reliable financial advisor as early as possible so that you can successfully survive when the hurricane comes.

  • Reconsider your income limit

It is important to take into account the number of dependents, household size, the amount of salary you receive monthly, and any additional incomes. Analyze your financial state and how much you need to settle. Even though it seems like a short-term plan, limiting your drawdowns for a brief amount of time may keep you safe from further losses. No one wants to collect money from a pension pot that is already running low or, even worse, empty.

  • Set up a liquidity cushion
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Establishing a liquidity cushion or rainy day fund is important to make sure that your life can be covered for 6 months or so during the crisis. You should store it in an easy-to-access with a high-yield saving account. As a result, you can obtain profits on your savings while still having access to withdraw them at any time. In the end, you will have an adequate amount of money to support your life when your investment drops. 

You cannot always apply the same strategy to different financial conditions. You need to keep up with the current economic outlook and prospects to be able to identify the best strategy and plan that can help you in achieving your financial goals. If you think it is difficult to do on your own, you can always use the help of a pension transfer specialist to recommend the most suitable scheme that is solid and stable for you. 


Finally, investing in a SIPP requires you to be careful in making every decision. As one wrong step may lead to a great financial loss that you never want to encounter. It is also important to remember that what you invest now is for you to have a prosperous retirement, so you shouldn’t be too aggressive during the market crash if you want to secure your asset and your future. You should remain focused on the long-term desired accomplishments instead of what you get now.