Has virus-induced volatility affected your retirement plans? If it has, you aren’t alone. A recent survey of Fidelity investors shows almost three-quarters of investors who plan to retire in the next five years are rethinking their plans for retirement because of the impact of COVID-19.
While global markets have shown signs of recovery since their steep sell-offs, reduced pension savings pots remain front of mind for those with one eye on giving up work. 61% of respondents due to retire within the next five years have seen the value of their retirement savings fall. And more than half of all surveyed are worried their savings will no longer provide them with the level of income they require in retirement.
The result is a growing acceptance that continuing to work for longer than anticipated is a likely scenario for many. 54% of the cohort planning to retire before 2025 now say they will have to defer downing tools in order to address their pension shortfall.
When there is anxiety, the important lesson is not to make emotional decisions. It is important to think more objectively. It is important to talk through how you see the future. That’s why we are here…to help discuss these issues. Why talk to us when you can talk to one of the thousands of wealth managers and similar?…conflicts of interest. Most firms simply want to manage your money. It means there is a predetermined mindset in the minds of wealth managers when you talk to them. It is so important to have a safe place to talk without the fear of being sold investments.