Don’t Let Long Covid Derail Your Retirement

Covid has affected almost every aspect of our lives and that includes retirement plans and, as with the epidemic, for some people the effects will linger.

It has thrown up new challenges, but Reeves’ retirement planning, based on our propriety process, will help ensure that our clients are on track to meet their retirement goals.

We will aim to maximise our clients’ income in retirement, protect them from future tax liabilities, try to ensure they can retire when they desire, provide an income when they require it and maximise their investment returns.

Here are five examples of ways in which covid could have affected retirement plans.

One. Despite furlough and other government support measures, some people may have lost their jobs as a result of the pandemic. Alternatively, it may have prompted an earlier retirement than planned, perhaps after enjoying enforced leisure and making them reluctant to return to a 9 to 5 existence. Or, for others, it may have delayed retirement because they have had to reduce retirement savings or even dip into them. Whatever the situation, we will review their plans, discuss with them their objectives and how these can best be achieved.

Two. For those who have had to defer making pension contributions, either because they have lost their job or had a reduced income, this is a good time to review their provisions. They might possibly have a defined benefits scheme but no longer value the benefits it offers, preferring the flexibility and control of a money purchase scheme.

Three. Other clients we have spoken to have delayed retirement for a year, not because of financial pressures but because the year has been such a write-off they opted to carry on working and wait until they can go out and socialise and travel and generally enjoy their retirement.

Four. Many have made significant savings during the pandemic, spared the expense of nights-out not enjoyed or holidays not taken. At Reeves we can help them plan to put this money to work to boost their retirement planning, perhaps by maximising pension or ISA contributions.

Five. For many, of course, this has been a time of sadness, perhaps losing friends or family members. This inevitably prompts a review of priorities and we can advise clients who want to consider issues such as: wills; power of attorney; insurance; or the value of a defined benefit pension.

For anybody facing these or similar issues, it’s important to book a meeting with their Reeves account manager. The same applies to anybody who isn’t a Reeves client.

Are you on track to meet your retirement goals? Are you still following the right investment strategy to meet them? Are you sitting on any old, forgotten pensions, perhaps from a previous employer? Circumstances change over the course of a life, so are you sure the provisions you made a few years ago for retirement are still appropriate? If you don’t know the answer to some or all of these questions, thirty minutes with a Reeves account manager will help reveal your options.

The articles are for information only and should not be construed as advice or a recommendation. The investment strategies mentioned are examples only and may not be suitable for your particular: circumstances, tax position or objectives. Please seek independent financial advice before taking any action.

No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.