Has 2020 impacted your retirement plans?

Throughout the pandemic, we have seen an increase in some clients who have decided to push back their retirement because of the restrictions’ lockdown has posed whilst others have chosen to retire early as it becomes apparent life is too short.

The most common reason why some adults aged 50+ have delayed their retirement plans is a reduction in household income, mentioned by nearly four in ten (38%). The good news is, if you can delay your retirement, this can provide valuable extra years to help build your pension pot.

Our lives have changed and people are viewing their finances in a different light. There is evidence to suggest some are paying closer attention to their investments than before. Three in ten (28%) of adults who had investments at the end of February paid closer attention to their value because of the pandemic. It’s clear that planning for the future and protecting your wealth and your health has never been so prevalent.

Getting professional advice tailored to you can be very worthwhile, the FCA’s recent report stated that, “Those who have had regulated financial advice in the last 12 months are more engaged and have a better understanding of their pension than those who have not.”

Interestingly only 12% of women are taking an active interest in their pensions compared with 26% of men. Women are clearly less engaged and less likely to review their pension pot or performance. This could leave women underprepared financially for retirement. Whilst there are reports of younger women (aged 18-34) taking steps to increase their pension contributions and engage with a financial adviser there is still a concerning disparity between men and women.

For the Self-Employed planning for retirement is even more important as it appears they are less likely to have a pension in place.

How can we help?

You may be worried about the effect of 2020 and how it will affect your financial future. We’re experienced in supporting real people with real concerns, let’s put your mind at ease by providing personal, tailored advice. Our team can:

• Make sure your investments are ready for when you do choose to retire.
• Help you navigate the complex tax rules and avoid mistakes
• Help you understand all the different ways you can access your pension and how to make sure it lasts for as long as possible.
• Review your current pension plans and help you find any that you have lost.
• Shop around for the right deal and make sure you have confidence in your retirement plans

Start your Pension journey today by speaking with an Independent Financial Adviser at Innes Reid. The first consultation is free and with no obligation.
Contact us on Tel: 01244 347583 or by email on enquiries@innesreid.co.uk

Don’t leave your future to chance. This article isn’t personal advice.

*Source: Old Mutual Wealth, FT Advisor