Co-op insurance conducted a study that found almost 20% of people aged 50* and over have had their retirement plans impacted by the current pandemic.
25% say they are no longer able to retire due to the negative impact on their finances and 20% have had to use some of their retirement savings earlier than planned due to being out of work*.
This means that the value of your pension pot may no longer be sufficient to provide you with the level of income you require.
At Four Wealth Management, our Financial Advisers have been reviewing investors pensions that have a UK bias as the FTSE 100 recovery has been much slower than the US which means that pension funds are lower. They have been recommending that clients make sure that pension pots are well diversified to mitigate risk. At Four Wealth Management, a Financial Adviser can determine which funds are suitable for your individual goals and appetite to risk.
What can the over 50’s do to improve their retirement plans?
If you are close to retirement, you should locate all of your pensions. You may find it helps to consolidate your pensions to make them easier to manage and understand what fees you are paying. However, such a decision cannot be taken lightly, as some pensions contain benefits, which may be lost on transferring to another provider and charges may be applicable, so it is imperative that advice is sought before any decision is made.
If you have changed job multiple times throughout your career, you are likely to start a different workplace pension with each new employer which means that you will have multiple small pension pots that are hard to keep track of and you will find it hard to determine if you have enough money to retire.
At Four Wealth Management, a Financial Adviser can work with you to determine what actions you should take that would be in your best interests and help you acheive your future goals.
Another way to improve your retirement plans in your 50’s is to make sure your investments are aligned to your attitude to risk, capacity to loss and time frames. For example, if you are not planning to retire until the age of 65 and still have another 15 years to grow your pension pot, you may be able to afford to take more risk than if you are retiring imminently.
Get your retirement plans back on track
If you would like to review your existing pensions and make sure your investments are aligned to your individual goals, you can book a no-obligation face to face or telephone meeting with a financial adviser at Four Wealth Management by phoning 0117 973 0500.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
*Co-op insurance, 2020, Research was carried out on behalf of the Co-op by Atomik research among 2000 UK adults aged 50 and over
Four Wealth Management Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products.