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The first months of the year were heady times. The rand and commodities were on a strong run, pushing the JSE upward, creating a sense that 2026 was going to be a year of strong returns for equity investors, despite rumblings of an AI bubble in the global system. By March these strong tailwinds ceased abruptly as fuel prices shot up due to the war in Iran. This put inflationary pressure on local and global markets. What seemed like the prospect of a good year dimmed somewhat as many gains were reversed, for now at least.So what does this mean for investors? Wars disrupt trade routes, increase market volatility, and drive investors towards perceived safe‑haven assets. Why? Investors dislike uncertainty, which is what war creates. However, experience and history have shown that in the long term, markets tend to rise. This is business as usual for those playing the long investment game.Investing in growth assets does mean that investors need to accept a certain level of volatility in the short term but they should be rewarded for this risk in the long term. This has naturally caused some concern among those saving for retirement, particularly among people who fear their savings might be depleted even faster than planned.Equity markets, which form the largest portion of traditional retirement savings, have taken a pause from the strong growth seen in recent months. As expected, we see a move into less volatile cash savings right now so as to provide a short-term solution to volatility. However, this could mean a crystallisation of any losses experienced. Second, timing your re-entry into risky assets becomes extremely tricky. These solutions might sound good, but in reality, taking the long-term view is the best plan right now. Equity markets, which form the largest portion of traditional retirement savings, have taken a pause from the strong growth seen in recent monthsMarkets do normally recover strongly, and if you’re elsewhere with your money right now, you could miss out. This is no casual promise. Over the past 40-odd years markets have been rocked by numerous global events, and they have always recovered. Investors who put their money in growth assets do have to accept a certain level of volatility in the short term but they should be rewarded for this risk in the long term.Making emotional or hasty decisions in times of heightened uncertainty could jeopardise retirement outcomes.While equity markets are more volatile than cash in the short term, they have historically produced higher long-term returns. Some investors close to retirement may think that there is no long-term investment view because the time they have until they reach retirement is insufficient to see a market recovery. What investors should be thinking about is their exposure to risky assets, their appetite for risk, the term left to retirement and, most importantly, the options available to them at retirement. There are many options that allow for exposure to markets at the time of retirement to take advantage of a market recovery. These can be in the form of deferring retirement, purchasing a retirement product that still gives exposure to markets in retirement, and transitioning into retirement.There is no general view that can be taken, and investors need to consider their specific circumstances. This is where people need to engage with their financial advisers or with their fund’s benefit counsellors.Investors can also take comfort from the fact that markets do normally return to familiar settings, which rewards a long-term outlook.• Somaroo is the head of investment propositions at Liberty, the insurance and asset management division of Standard Bank
