Pandemic Pension Planning - Review my pensions

Retirement planning in lockdown

We’ve had a lot of questions about how the pandemic will affect pension and retirement plans. Like with the crash in 08/09, we’re facing very uncertain and rocky times in the investment markets under the shadow of Covid-19.

As long as you’re needing to withdraw your pension from the markets, sit tight. It’s difficult to log in to your pension value while markets are low or uncertain. It is very important to keep track of your pension value, but best not to check every day!

Retiring this year? Speak to your adviser and plan a disinvestment strategy

This is certainly not a time to fully encash from the markets. However, if you do need to generate income, or want to capitalise on new investment opportunities for your pension, you will need some cash. Stocks aren’t ALL down, just look at the returns for Netflix or Amazon in the last 6-months! It is important to review the investments in your pension before you make any trades.

Cash-in the investments which have performed well and are unlikely to grow any further in the next 12-months. Consider keeping any stocks which have performed poorly – consider the companies concerned, when life returns to normal, will they bounce back? If the company fails further, will it get a bail out or likely be bought by a bigger firm?

The hospitality and travel sectors are struggling, but perhaps it’s time to capitalise? If you have a 3-year investment term, are you confident that life and business will return in that time? If so, buy.

Of course, investment decisions and control are only available in private pensions. If you hold a SIPP or QROPS, only consider regulated funds or direct stocks for investment. If you have a DB plan or a private pension which doesn’t allow a wide range of investments, consider switching to a plan that does.

Take professional pension planning advice

Before you make any important decisions about your pension and retirement planning, or adjusting your investment strategy, its important you take professional, regulated advice. Remember, if you’re professionally advised then you have a right to complain. If you trade yourself, or take ‘advice’ from an unregulated broker or firm, then there will be no one to complain to if things go wrong.

Pandemic Pension Planning

Tagged on: Pension Investment Retirement Planning

Pension Transfer Personality Quiz

Take our free pension transfer personality quiz to find out if a pension transfer is right for you!

1 / 10

How would you describe your investment or financial planning experience?

I have never taken invested money in the markets, I don’t understand pensions and have no interest in financial planning

I take some interest in my planning and would like to explore my options

I have a keen interest in finances and the markets, and have some investment experience

2 / 10

Where will you live in retirement?

I will live in the UK and be a UK taxpayer

I am uncertain of where I will live, it could be abroad

I will not live in the UK in retirement

3 / 10

What sort of taxpayer will you be in retirement?

I will pay modest UK tax, with total income under £40,000 per annum

I will be a UK higher rate taxpayer

I will not be a UK taxpayer as I will live abroad

4 / 10

How would you describe your relationship with money and finances?

I have a poor relationship with money. I struggle to keep to a budget and tend to overspend.

I have a realistic attitude to money and finances. I save surplus income and live within my means. I take some interest in my finances.

I have a good relationship with money. I focus on long-term savings and take interest in my financial planning. I have a good understanding of pensions and am comfortable discussing financial topics.

5 / 10

Are your essential outgoings already covered by other retirement income?

No, my pension will be used for essential outgoings

Partly, I do have other sources of income for retirement

My essential outgoings will be covered by other income in retirement

6 / 10

Will anyone else be reliant on your pension for their financial security?

Yes, this will be the main source of income for our household in retirement

Partially, but my loved ones have other resources for their retirement

No one else is dependent on my pension income

7 / 10

When you retire, will you need to withdraw a lump sum?

I do not require a specific lump sum, but the option would be nice

I will need some funds at retirement

I want to take the maximum lump sum available

8 / 10

Do you require ad-hoc access to your pension funds in retirement?

No, a structured income would be enough

I would like the option to take ad-hoc withdrawals

I would like my pension to be flexible and allow ad-hoc withdrawals

9 / 10

How would your ideal retirement income be structured?

I want a guaranteed monthly income for life

I want some financial protection, with some flexibility

I want my pension income to be flexible and under my control

10 / 10

If you died, who would you want to benefit from your pension money?

I would like my spouse/civil partner to benefit from a pension income for their lifetime

I would like my spouse to benefit first, with money then left to children or other loved ones

I would like to have the flexibility to choose and change who benefits from my money

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Retirement planning in lockdown

Retiring this year? Speak to your adviser and plan a disinvestment strategy

Take professional pension planning advice

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