During uncertain times, confidence in the global markets often shrinks.

This anxiety can come from a range of sources. Conflicts, economic downturns, political tensions, and the pandemic have all knocked investors’ confidence in recent years.

And when confidence falls, so can share prices. We’re seeing this currently with the conflict in Iran.

For pension savers, such dips can be unsettling. However, volatility is part and parcel of the stock market. Values will inevitably rise and fall over time, with countless factors impacting share prices.

The good news is that, historically, markets have trended upwards in the long term despite market corrections along the way.

Read on to discover how the global stock market reacted to three historical events in the 21st century, and how your pension is built for resilience.

1. The 2008 financial crisis

In 2008, the US suffered its most severe economic downturn since the Great Depression of the 1930s.

The ripple effects were felt around the world. As major banks collapsed – including Lehman Brothers, which declared the largest bankruptcy in US history – the global economy fell into recession and a financial crisis.

The global markets fell sharply, causing major US indices to suffer record-breaking losses. Between October 2007 and February 2009:

• The S&P 500 (an index of the US’s 500 leading listed companies) fell by almost 52.6%, according to Macrotrends data
• The FTSE 100 (100 of the UK’s largest listed companies) fell by around 43%, as London Stock Exchange (LSE) data shows
• The FTSE All-Share (600 companies listed on the LSE) fell by approximately 44.1%, according to LSE data.

The markets ultimately recovered, with all three indices returning to pre-crisis levels in 2013.

Not only did the markets recover, but they continued growing well beyond their previous levels. As of 1 May 2026, the S&P 500 was over 360% higher than in March 2013.

2. The Covid-19 pandemic

At the outset of the Covid-19 pandemic in 2020, global economies suffered significant downturns amid unprecedented changes.

Countries around the world were locked down in a bid to control the virus. Businesses closed, unemployment soared, and supply chains became fractured. What’s more, no one could predict when or how the pandemic would come to an end, creating uncertainty and wavering confidence among investors.

Some share prices soared in areas such as technology, e-commerce, and healthcare. But overall, the global markets experienced a significant downswing.

Between December 2019 and March 2020:

• The S&P 500 fell by around 20%
• The FTSE 100 fell by approximately 24.8%
• The FTSE All-Share fell by almost 26%.

However, the decline was relatively short-lived. The S&P 500 recovered by July 2020. The FTSE All-Share returned to pre-pandemic levels by December 2021, while the FTSE 100 recovered by April 2022.

The markets have continued to grow despite ongoing fluctuations since the end of the pandemic. The S&P 500 had exceeded its pandemic recovery by around 121% as of 1 May 2026.

3. The Russian invasion of Ukraine

On 24 February 2022, Russia’s invasion of Ukraine sent shockwaves around the world. The conflict triggered energy and food shortages in many countries, exacerbating inflation and resulting in a cost-of-living crisis in the UK.

As the Russo-Ukrainian war continues, global economies are still feeling the effects over four years later.

At the war’s outbreak, global markets fell, with European economies most dependent on Russian trade suffering the most severe downswings.

Between February and September 2022:

• The S&P 500 fell by around 18%
• The FTSE 100 fell by approximately 8.2%
• The FTSE All-Share fell by almost 10.3%.

Despite the ongoing conflict, the FTSE 100 and FTSE All-Share recovered by the start of 2023, while the S&P 500 returned to its previous levels by June 2023.

Again, growth has continued for all three indices since then. As of 1 May 2026, the S&P 500 is around 62.5% higher than in June 2023.

Pensions are a long-term investment

These events demonstrate how the markets have historically recovered from even their most significant temporary downturns.

Those who stayed invested in key indices throughout the downturns outlined above will have seen their pension values recover and continue growing. Meanwhile, investors who exited the market during a dip will have missed out on recovery and future growth, potentially locking in a loss.

Pensions are long-term investments typically held for decades, not days. So, while volatility can feel uncomfortable when you’re saving towards your retirement goals, the value of your investments – and your pension pot – is likely to grow over time.

You can also use market corrections in your favour, as investing regularly in your pension through pound cost averaging allows you to buy more units when prices are lower.

Although past performance is not a guarantee of future returns, the graph below shows how the FTSE All‑Share Index has trended upwards over the past 20 years. The market corrections mentioned above are clearly visible, highlighting the importance of “zooming out” and not focusing on short‑term volatility.

_{Source: London Stock Exchange}

Diversification

Pension funds are usually invested in a diverse range of assets.

Diversification is a common investment strategy to help mitigate the impact of market volatility. By spreading funds across a variety of geographies, sectors, asset classes, and risk profiles, investors can generally limit their exposure to volatility in particular areas.

So, while some investments may experience a correction, others may continue growing, mitigating the overall impact on your fund’s performance.

Your pension is built for resilience

While news of stock market volatility can be concerning, it’s important to remember that your pension is built for resilience. By staying invested for the long term, you could help mitigate the impacts of market fluctuations.

Despite this, it’s important to pay close attention to your pension savings so you can be sure that your pot is growing as it should. The ZIO app contains useful educational tools to help you learn more about your pension and how to keep track of your investments.

You can email enquiries@rfsl.co.uk or call 01534 502000 in Jersey or 01481 747940 in Guernsey for more information.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until age 50. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change.

Rossborough Financial Services Limited is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998 and licensed by the Guernsey Financial Services Commission.