Whatever your life stage, the Covid-19 pandemic has put into sharp focus the need for retirement planning and amongst the uncertainty the pensions market has been hit hard.
With defined contribution pension schemes – whether private or through your employer – reliant on the stock market, the shockwaves and the associated big rises and falls over the past 12 months, may well have had a significant impact on how much you have in your pot.
The average pension lost around 15% when the coronavirus first hit the stock market back in March 2020, before recovering by around 13% by the end of August 2020. This isn’t as serious for those savers who are in their 30s or 40s and have time on their side to ride out market volatility and get their pension pots back on track. But it’s a different story for those approaching retirement.
With life expectancy on the rise a recent report from the People’s Pension revealed that 74% of people nearing retirement are on course to run out of money in their early to mid-80s. This will cause a number of people issues later in life, especially as a nation that doesn’t place a lot of focus on retirement planning. It is thought that only one in ten are making any kind of financial plan for their future.
There are many things to consider when it comes to your own retirement planning strategy from risk appetite to a raft of complex tax implications. Our expert team are here to ensure you can live comfortably for many happy years post retirement.