Stay calm and take advice
It may feel as though your plans have been put on hold due to Covid-19, and while the disruption is real do not let it stop you considering your retirement plans. Despite the uncertainty ask yourself what lies ahead and are my plans adequate?
1. What's your plan?
You have worked tirelessly, made a lot of important and even irreversible decisions – don't be afraid to look back but don't lose sight of what lies ahead. Acknowledge where you stand with your savings. Confront your time-scales. Revisit your attitude to risk. Check your capacity for loss.
2. Keep at it
Pensions are a long term investment, don't lose your nerve – keep contributing if you can or even increase or decrease payments. Consider the option of your investments being bought at a lower cost so as to benefit from any market comeback. Remember, your investments can go up as well as down.
3. Cash savings
If you are in a position to use some of your cash savings, one option is to use this in the interim, so that your investments have some time to recover from any market fluctuations. That way you don't have to sell your investments at a lower cost and won't lose the opportunity for the values to go up again.
There are many different schemes, terms and conditions, different features and often minute but very important details that your Independent Financial Adviser will be able to explain and help you make sense of so that you can make the best decision for your retirement.
5. Keep an eye on your money
Remember, your retirement savings will have to last you for...potentially decades – don't let the money run out. Plan for your income and expenditure. Think long term and don't be tempted to withdraw all of your savings at once. Cash-wise – inflation is your enemy number one.
6. Don't stay still
Have a plan but be prepared to be adaptable. Times are changing and not a lot is certain – if you stay flexible in your attitude to your plans so will your finances. Work part time? Work longer? Start saving more now? Ask your Independent Financial Adviser to help you get where you want to be in retirement.
7. Get help
It's imperative to get independent and impartial financial advice, tailored to your unique needs and circumstances to ensure that your retirement is on course and all your options are laid bare in front of you. Don't try to DYI your future – contact us and get the right advice today.
Silvia Johnson Bsc(Hons), DipPFS, EFA, CertCII (MP) is a Director and Independent Financial Adviser at Royale Thames Wealth and provides independent financial advice to individuals and businesses.
07908 109 741 / 020 8720 7249
Royale Thames Wealth Ltd is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by Financial Conduct Authority number 460421.The value of your investment may go up as well as down and the value is not guaranteed. Past performance is not a guarantee of future performance.Wills and Estate Planning are not regulated by the FCA.