Don’t let the pandemic derail your retirement plans

elderly couple with phone

The pandemic is having a far-reaching impact on all aspects of our lives, not least our finances. Although stock market volatility has posed challenges, you must not allow the outbreak to send your retirement plans off track.

RESILIENCE SAVES THE DAY

The need to develop a resilient retirement plan has been vividly highlighted in recent weeks. Although market turbulence will impact all pension holders, those with a carefully-considered, clearly-defined plan will inevitably be in considerably better shape to navigate any market volatility ahead. On the approach to retirement, a larger proportion of a pension fund will be ‘lifestyled’. This means it transfers to less risky assets, like cash, gilts or bonds, thereby tempering the overall level of investment risk.

IN IT FOR THE LONG HAUL

Making decisions based on short-term economic disruption is exceptionally risky. Usually the optimum strategy is to be patient, resist the urge to sell and maintain a long-term investing philosophy.

Pension savings are intended for the long term. For younger investors, there’s plenty of time for markets to recover and pensions to achieve growth aspirations before retirement income is required. Those closer to retirement need to take stock of their full complement of retirement resources before making any decisions. This will involve reviewing your pensions, savings and investments; in addition, we can quantify your level of income and determine whether this has been impacted by recently-cut dividends or reduced savings rates.

OPTIMUM WORK-LIFE BALANCE

Due to increasing longevity, a greater proportion of the population now withdraw more gradually from work as retirees strive to achieve a work-life balance that accommodates their needs. This staggered approach to retirement provides greater flexibility, as part-time work enables many pensioners to preserve retirement funds into later life. Even prior to the pandemic, this was an increasingly popular choice.

ADVICE INCREASINGLY ESSENTIAL

It’s not surprising, given the recent level of uncertainty, that the demand for professional financial advice has increased sharply. It has never been more important to obtain sound advice to ensure your retirement plans remain firmly on track. If you are concerned about the impact of the pandemic on your plans, an Independent Financial Adviser  will help you weigh up all your options and make a balanced assessment of risks tailored specifically to your individual needs.