If you were about to retire or planning to in the next six months and worried that your retirement plans have been derailed, now is not the time to panic.
Your work and earnings situation may have changed, and the value of your pensions and investments will almost certainly have taken an unexpected hit.
However, your retirement plan may still be achievable with some careful consideration and by creating a detailed plan for your assets and how they can be used.
We are here to help!
Talk to us about your retirement plans
Lines are open 8 am to 10 pm – 7 days a week.
Why advice is essential:
The reality is that pensions are more complicated than many people imagine. Getting the most out of them requires specialist advice to avoid common pitfalls which might seriously damage your wealth.
Asset classes: When the markets fall (or rise) not all of the investments held inside a pension are affected in the same manner. Some are held as Cash, which is less susceptible to market changes (up or down). Equities (stock and shares) are usually managed by investment teams and will almost certainly be affected by large swings in the stock market. Property, Corporate Bonds and Government Gilts are also held as assets within certain funds. These are much less volatile than equities, and such can provide a steadying influence on a good portfolio. They will fluctuate in value to a much lesser degree than stocks and shares; commercial and residential property funds for example are unlikely to suffer a huge loss on a daily basis!
The makeup of your pension portfolio is derived by your attitude to risk, your pension provider, and the funds either you, or your financial adviser choose for you. A well-balanced portfolio will consist of a range of funds, and assets classes and will provide exposure to worldwide markets, where appropriate.
So, despite the recent falls in the FTSE generally, the situation might not be as bad as you think. Don’t assume that your retirement plans are no longer achievable and seek advice from someone who can thoroughly review your pensions and your individual situation to create an up to date, achievable retirement plan.
The two examples below show how we have helped our clients and may help you to think differently.
We have set up a designated helpline if you find yourself in this situation.
For impartial advice that could get your retirement plans back on track call: 0330 353 057
Case study One
Colin was planning to reduce his hours to three days a week, with the eventual goal of retiring fully in three years’ time. Suddenly, thinking this financial crisis had affected his investments, Colin was resigned to having to continue working full time. We were able to restructure his plan.
How did we do this – using his savings, ISA’s, and the cash asset element of his investments (which hadn’t been affected by the downturn in the markets), and by planning to downsize his home in 10 years rather than 15, he still has sufficient assets to achieve his goals. By his eventual full retirement, the value of his other assets should have recovered, with careful professional management.
One thing many clients, including Colin, didn’t factor in was State Pension and growing older! As Colin’s state pension is due in 4 years- time, this will reduce the demand on his savings and pension funds, and in actual fact as he gets beyond 75, his income requirement is likely to reduce compared to today, further reducing demand on his other pots.
Case study Two
Mark is one of our retired clients, and as a relatively cautious chap, He has been taking a regular income from his pensions and was worried that the fall in the markets meant he would be withdrawing money when the markets were at a low ebb, damaging his overall financial goals. we have earmarked roughly 3 years’ worth of cash within his Reeves Pension & Investment portfolio. Planning realistically for future expected withdrawals is an integral and vital part of the retirement plan we create initially and review very regularly. They are key to creating a meaningful, accurate income and investment strategy.
In Marks case, by retaining either cash or a “short term” investment portfolio we can cater for the income he needs for 3 years in a lower risk environment. He doesn’t have to worry about the daily performance of the markets and world events. We can then allow the remaining investments more freedom to look at the longer-term opportunities via equity-based funds for greater returns over time. Mark, like many of our clients has a wife and grown up children, and his ultimate desire is to enjoy his own retirement, but to continue to build wealth and leave as much as he can to those he eventually leaves behind.
Talk to us about your retirement plans
Lines are open 8 am to 10 pm – 7 days a week