The measures designed to prevent the spread of coronavirus have been dramatic and will have an effect on our lives and financial planning for the foreseeable future.
There have been some important lifelines, from the Bank of England’s decision to reduce its Bank Rate to a record low of 0.1% to the government’s decision to support the income of those forced to stay at home.
Will investments suffer?
In the case of your pension, the amount of exposure you have will reflect both your attitude to investment risk, and the time you have until retirement. As your retirement nears, you will likely look to have steadily reduced exposure to the potential volatility of equities.
However, even if you are due to retire the chances are that your pension fund will have currently lost some of its value.
You may need to reassess your retirement plans. A smaller pension pot could mean a less prosperous retirement – or considering carrying on working for several more years to build your pension pot back up.
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What has the effect of the coronavirus been on your finances? You need to start finding out – and you can start by contacting us now.
What can you do?
Having a drop in value of your pension pot is a blow, particularly if retirement is close – but at Continuum we know that there are many measures that you can take to reduce the impact.
You might consider options such as drawdown, which will allow you to withdraw an income from your pension pot while leaving it invested, where it will hopefully regain some of the value it has lost when markets recover.
If your retirement date is years away, it is still important to get professional help to ensure that your pension pot has the best chance of recovery, with careful investment to suit the current challenging financial climate.
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If your pension plans have been disrupted, you need to get an expert view without delay. Call us for the help you need.
Call us for the help you need.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of your investments and pensions, and the income they produce, can fall as well as rise and you may get back less than you invested.
Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.
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