Pension funds invest across different asset classes, including government securities, equities, property and other investments, with the goal of growing members’ savings over the long term. This means that market performance can directly influence the value of your pension savings. When markets perform well, pension funds can benefit from investment income and capital gains. Over time, these returns can compound, allowing your pension savings to grow beyond the contributions made by you and your employer. When this happens, the value of some pension investments may temporarily fall, affecting the value reflected in your pension statement.