Recent stock market volatility may have made you anxious about your pension, particularly if you are nearing retirement, but it is important to consider the wider picture to keep your plans on track.
Resilient financial planning
Those who stick to their carefully thought-out financial plans will inevitably be in better shape to ride out market volatility. Furthermore, those close to retirement may have already benefited by having their pension fund ‘lifestyled’, which automatically switches funds into safer assets such as cash, gilts and bonds
Keep on course
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 incurred.
Pensions are long-term investments, so for younger investors, there should be plenty of time for markets to recover and pension pots to achieve the necessary growth before retirement income is needed.
For those closer to retirement, it is a good idea to review your pension pot alongside other savings and investments to get a full picture of your financial situation.
Funds for later life
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.
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.
We’re here to help
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.