As Covid – 19 demonstrates, we never know what is around the corner.
However, many financial experts believe that the recovery is not only underway, but that it could be spectacular. The Organisation for Economic Co-operation and Development has recently said that the UK is likely to grow 7.2% in 2021, up from its March projection of 5.1%.
At Continuum we are looking at whether this is one prediction that we can count on and what it might mean for your finances.
What does the OECD base its forecasting on?
The OECD report looks at how countries have performed during the course of the crisis.
The current data supports their strong forecast this year for the UK and points at the fastest growth among the large rich countries. It also includes assessment of how soon each country will take to get back to pre-pandemic levels. For the UK, it’s the middle of next year.
The OECD suggests that the UK economy is essentially sound and well managed. It also points to the key role of vaccination. By driving down infections by isolation and vaccination, the UK could be ready for a faster recovery and a period of growth while other nations are still lagging.
Are you on the road to recovery yet?
The epidemic may have been a setback for your financial plans, but the recovery may offer ways to make up for lost time.
There are several areas that you may want to look at.
- You may need to find new ways to use savings. Current low interest rates may be around for years to help the country get back on its feet. Cash saving will remain unrewarding – especially if inflation is on the increase.
- It could be time to look at your investments and add stocks of businesses set to boom and divest those stocks which may have had their day.
- You should probably review your pension, to see that it is still on track to provide the retirement income you need.
- Working from home may become important for you. A larger home away from the traditional centres may become a priority. A move now could let you take advantage of record low mortgage rates.
- There may be changes to taxation and pension allowances in future. You might want to see what this might mean for your plans.
Get some expert advice
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At Continuum we always sit down with clients, to know their life goals, before we prepare a lifetime financial plan to help reach them. But the plans can never be set in stone. The Covid crisis meant setbacks to everyone’s financial plans. Seizing new opportunities provided by the recovery could overcome the setbacks and even get you to your financial goals sooner.
Whatever your new financial objectives, at Continuum we can help you take advantage of the recovery.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable retirement or investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested. Past performance is not a guide to future returns.
Equity investments do not offer the same capital security as deposit accounts.
The levels, basis and reliefs pf taxation are subject to change and there values depend on individual circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.