Retirement Planning During COVID-19
The pandemic has caused major disruption in a multitude of different ways – and regrettably, it’s also raised concerns about retirement options. According to the Institute for Fiscal Studies, one in eight people have now altered their retirement plans thanks to COVID-19.
During this challenging time, it’s especially important to protect yourself financially for the future. Here’s some information about the impact coronavirus has had, and how to approach your retirement planning as a result.
COVID-19 – Short-term impact or lasting legacy?
The IFS’s research found that 8% of people planned to retire later as a result of COVID-19. 5% stated that they intended to retire earlier.
A large number of those planning to defer retirement cited financial impact as the main factor; as they’ve seen their pension funds drop in value. They felt they needed to work for a longer period of time to compensate for this loss.
Those who said they planned to retire earlier stated that they weren’t confident in finding new employment if they were made redundant. For the fortunate few, early retirement was an option due to having a good level of savings to support them.
Should you cash in your investments quickly?
Many people are worried that their pension fund will be adversely impacted by the pandemic. While this is true in the short-term, it’s unlikely to be the case further down the line.
Indeed, cashing in your pension now could have an adverse effect on your future financial situation. By releasing the funds at this present moment, you’ll be taking them when they’re at their lowest value.
Consider other investments
Remember that there are other financial products that can be used to fund your retirement years. These include:
- Cash ISAs
- Your property
- Any additional properties (rental income and capital growth)
- Savings
These are all valuable assets too, and a diverse portfolio may well be beneficial at present. If you’re not sure what sort of investments would suit you best, a financial advisor can help you to explore your options.
Dodgy scams are on the rise
There has been an increase in the number of financial scams during lockdown, with some being sold pension plans, only to discover that they don’t exist. Before agreeing to any pension product, it is wide to check the company is registered with the FCA.
Things can change quickly
The economy has undoubtedly been challenged during the COVID-19 pandemic. However, while coronavirus’s impact may be felt for a while, it won’t last forever. It’s important to remember this before making any hasty decisions.
View this as the ideal time to appraise your current financial situation, and fine-tune your plans for the future. Most experts agree that the market will recover in time – it’s just a matter of waiting it out.
Prepare for your retirement
If you’re concerned that your current pension isn’t working hard enough for you, get in touch with Lighthouse Financial, as we’re here to help you get the most from your investments. To start the conversation today, call us on 01697 325852.
The pandemic has caused major disruption in a multitude of different ways – and regrettably, it’s also raised concerns about retirement options. According to the Institute for Fiscal Studies, one in eight people have now altered their retirement plans thanks to COVID-19.
During this challenging time, it’s especially important to protect yourself financially for the future. Here’s some information about the impact coronavirus has had, and how to approach your retirement planning as a result.
COVID-19 – Short-term impact or lasting legacy?
The IFS’s research found that 8% of people planned to retire later as a result of COVID-19. 5% stated that they intended to retire earlier.
A large number of those planning to defer retirement cited financial impact as the main factor; as they’ve seen their pension funds drop in value. They felt they needed to work for a longer period of time to compensate for this loss.
Those who said they planned to retire earlier stated that they weren’t confident in finding new employment if they were made redundant. For the fortunate few, early retirement was an option due to having a good level of savings to support them.
Should you cash in your investments quickly?
Many people are worried that their pension fund will be adversely impacted by the pandemic. While this is true in the short-term, it’s unlikely to be the case further down the line.
Indeed, cashing in your pension now could have an adverse effect on your future financial situation. By releasing the funds at this present moment, you’ll be taking them when they’re at their lowest value.
Consider other investments
Remember that there are other financial products that can be used to fund your retirement years. These include:
- Cash ISAs
- Your property
- Any additional properties (rental income and capital growth)
- Savings
These are all valuable assets too, and a diverse portfolio may well be beneficial at present. If you’re not sure what sort of investments would suit you best, a financial advisor can help you to explore your options.
Dodgy scams are on the rise
There has been an increase in the number of financial scams during lockdown, with some being sold pension plans, only to discover that they don’t exist. Before agreeing to any pension product, it is wide to check the company is registered with the FCA.
Things can change quickly
The economy has undoubtedly been challenged during the COVID-19 pandemic. However, while coronavirus’s impact may be felt for a while, it won’t last forever. It’s important to remember this before making any hasty decisions.
View this as the ideal time to appraise your current financial situation, and fine-tune your plans for the future. Most experts agree that the market will recover in time – it’s just a matter of waiting it out.
Prepare for your retirement
If you’re concerned that your current pension isn’t working hard enough for you, get in touch with Lighthouse Financial, as we’re here to help you get the most from your investments. To start the conversation today, call us on 01697 325852.
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