CALLING ALL CLIENTS – Can you help your family and friends?

We are all aware of the considerable volatility the coronavirus has caused in the financial markets. Many people, particularly those without a financial adviser, are likely to be feeling anxious about the value of their pension savings falling and may even be re-thinking their retirement plans.

It is natural to be worried about the impact investment falls will be having on your invested savings. We are in extremely turbulent times and it has never been more necessary to have a thorough and robust financial plan in place.

For those already drawing down in retirement, how can you help make sure your money lasts?

Since 2015, ‘pension freedoms’ have given individuals more flexibility in how they can access their pension. Many have taken advantage of this and now use ‘flexi-access drawdown’ to fund their retirement, drawing from their pensions in small regular intervals to effectively pay themselves a salary, as opposed to a guaranteed life annuity.

When markets are falling, this regular amount becomes a larger proportion of your overall pot and once withdrawn, there will be less money invested to recover losses, if and when markets begin to recover. Therefore, it is worth considering, could you take less right now? Or perhaps temporarily cease drawing an income.

The majority of us have spent a period of time in lockdown, not being able to spend on many leisure activities or travel, meaning we may have more in our cash savings. So, do you have other savings or sources of income you could use to supplement your income in the short-term? We would need you to consider the options you have, which may mean dipping into cash accounts which you have put aside for an ‘emergency’ or a ‘rainy day’, like this.

A major factor in the sustainability of your pensions is where they are invested. The returns you make on your investments during the first few years after drawing an income, generally have the biggest impact on the longevity of the pot. This is why it is so important to regularly review your pension savings to ensure they are working as expected.

When advising our clients in retirement, we design and establish a plan which can include different mixes of risk. We will include investments which help protect the money you need to take in the short-term, while including assets that provide growth potential and to help prolong the value in the long-term.

Although changing investments now whilst markets are volatile may mean that you lock in some losses, it is still a good time to review your invested savings to ensure they appropriate for you and your long-term plans.

If you or anybody you know may benefit from a review, please contact Banner Jones Wealth Management on 01246 560 570. Your first meeting is at our expense. We will assess your circumstances and see how we can help, add value or even just provide you with some peace of mind.