Perhaps now more than ever, it’s sensible to review your pension, and at Podium Financial we’re seeing an increase in clients contacting us who find themselves in one of three situations with their retirement plans following the pandemic.
1) Your retirement plans have slowed down
Your retirement date has been pushed back. You’ve decided not to retire at this time as you are unable to enjoy retirement because celebration events (such as dream holidays) are not possible.
How I can help you
2) Your retirement plans have speeded up
Your retirement date has been moved forward – possibly outside of your control due to redundancy. You could be under pressure to access your pension earlier than you planned or want to.
How I can help you
For the first time you have found yourself wanting to know when you can retire. You are suddenly motivated to sort out your retirement plans and get them into shape.
How I can help you
Making informed decisions sooner rather than later could make a big difference to the quality of your retirement, and although retirement planning can be complex, Podium Financial are here to make sure that your retirement plans are as good as they can be. If your pensions can be improved, we will explain how and discuss the next steps with you.
We offer a completely independent advice service without restriction or bias. This means that as a fully independent financial adviser, we are able to research the whole of the market and select the most appropriate products and services to meet your needs.
A pension is a long term investment not normally accessible until age 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested.
1. Review your existing pensions regularly
It is sensible to review your pensions at least once a year to help ensure that you are on track to meet your retirement goals and to understand what your pensions are likely to provide for you when you retire. Put simply, not reviewing your pension could have serious implications for your comfort in retirement, as you don’t want to find out that you’re not on target to achieve the standard of living you want in retirement when it’s already too late.
Make sure you understand how your pensions are performing and keep an eye on any under performing funds.
You should also beware of high charges. Typically, pensions have lower costs now than they used to, so if you have older pension plans that were set up some time ago, you may be paying more in charges than you should be.
2. Join your company pension scheme
It makes sense for most people to join their company pension scheme. These schemes are usually good value and auto enrollment means that all employers now have to pay into eligible employees’ pensions.
3. Choose the right investments for you
When choosing investments within a pension it can often pay to spread them around to reduce the level of risk. For example, investing in just one fund can carry the risk that if that fund manager performs badly, your entire pension fund will suffer.
Investing in shares is likely to give you the best long term returns, although as your pension fund gets bigger and as you get closer to retirement you may want to hold more money in other assets such as cash, fixed interest and property, as capital protection becomes as important as capital growth.
4. Don’t forget about your State pension!
From April 2020, the full new single-tier state pension is £175.20 a week, meaning that those who are entitled to it will receive over £9,000 a year.
To find out what state pension you could be entitled to and when you’re likely to receive it, you should obtain a State pension forecast. These can be obtained online at https://www.gov.uk/check-state-pension.
Also see whether there is anything you can do to boost this, such as making extra contributions.
5. Take independent financial advice
Retirement planning can be complex, and getting it wrong could have a huge impact on your standard of living in the future, so it’s important to make the right decisions to achieve your retirement goals.
If you’re not entirely sure what you’re doing, then you should take independent financial advice and contact us now on 01428 909266 or at firstname.lastname@example.org for an initial no obligation consultation at our cost.
A pension is a long-term investment not normally accessible until 55. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
It’s an anxious and upsetting time for everyone as the coronavirus pandemic takes hold, and whilst the primary concern is health, our financial wellbeing is also important.
Since the coronavirus outbreak, global stock markets have fallen considerably and based on the current news flow, it seems that we could experience market uncertainty and volatility for some time to come. You may therefore be wondering what actions or decisions, if any, that you should be taking with regards to pension and investments.
Markets move up and down all the time and if you have an investment but don’t need the monies in the short term, then you’re probably going to be ok as in time, it’s likely that markets will recover. The same applies if you are currently paying into a pension and have several years before your planning to retire.
If you’re close to or considering retirement, you may want to check what type of funds your pension is invested in. Lower risk funds which invest in Cash, Gilts or Bonds will normally help to protect your capital whereas if your pension is invested mostly in shares, then unfortunately you will have taken a hit and depending on when you are planning to retire, you may now have to consider taking a lower income or retiring later.
Psychologists have long recommended managing stress and anxiety by determining what you can control, thinking positively and making a plan. The best advice is not to panic, but to take a deep breath and keep to your long-term investment strategy. However, in order to help people through these unique times, I am happy to offer a free, no obligation 20-minute telephone consultation to anyone who is concerned about their pensions & investments and would like to discuss these with me. Please contact me on 01428 909266 or at email@example.com to arrange a convenient time for me to call you.