Keep your pension planning on track

As if the pandemic hasn’t given us enough to worry about, there is the resulting impact on global economies which has resulted in extreme stock market volatility. This may have made you anxious about your pension and wondering if you should take action, particularly if you are nearing retirement, but it is important to consider the wider picture before making any decisions, so that you keep your plans on track.

Long-term resilient financial planning

Making decisions based on what is happening in the short-term can be a very risky thing to do, with the potential to lock in any losses you have made.  

Pensions are long-term investments and those who stick to plans that have been carefully thought out, will inevitably be in better shape to ride out market volatility. If you have several years before you’re planning to draw on your pension, then there should still be time for your pension pot to recover from fluctuations in the stock market that occur in the short to medium-term.

If your retirement is some way off, you still need to review it regularly, including your level of contributions and tolerance to investment risk, to ensure you are on track to meet your retirement goals.

Closer to retirement

If you are close to your planned retirement date, you may have already benefited from ‘lifestyling’, which is where your pension funds are automatically switched from riskier equities into safer assets such as cash, gilts and bonds. If you have any concerns about your how your pension funds are invested, talk to your Sandringham Advising Partner.

Under pension freedoms rules introduced in 2015, you are able to access your pension pot from age 55. This may be tempting, but before making any decisions are made that can’t be reversed, it is important to consider your wider financial situation, which could include taking income from other savings and investments. We are able to look at the bigger picture and advise you accordingly.

Take control of your retirement

An increasingly popular option to consider is that of a staggered retirement, where you continue to work part-time before giving up work completely. With people living longer, to ensure your pension lasts as long as you do, this trend provides for greater flexibility and preserves retirement funds into later life.

If this is your preferred choice, we can help you arrange your pension pot so that it provides the level of income you need throughout the different stages of retirement.

Beware of scams

The incidence of financial scams has increased considerably since the start of the pandemic. All ages have been targeted, but with regards to pensions, fraudsters have been targeting men in their fifties specifically, thinking they may be keen to extend their investments before retirement.

According to Action Fraud, more than £30m has been lost since 2017 to pension fraud, with unauthorised “advisers” touting unrealistic investments. Financial anxiety can make all of us more vulnerable to fraud, so be wary of deals that sound too good to be true. Official advice can be found here and this includes seeking professional advice.

Financial advice is key

Recent months have seen an increased demand for professional financial advice. It has never been more important to get sound advice to keep your retirement plans firmly on track.

If you are concerned about the impact of the pandemic on your retirement plans, contact us. We can review your options and tailor make plans specifically to your individual needs.






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