15 Jul 2020
1 in 5 workers might have to delay retirement to make up the losses caused by the virus.
Many are re-thinking their retirement plans, including younger investors who still have time on their side to recover. Those who are already retired, have taken significant hits to the value of their pensions and don’t have time to recover their losses.
In a survey done by Aegon, 75% of adults yet to retire, feel they will not have enough to retire on and are thinking of alternative ways to boost their beaten retirement nest egg.
Those that are near retirement are considering
• Continuing full time work 21%
• Working part time 49%
whilst the remainder will rely on spouses for support or use rental income to fill the gap.
So, what can be done to rescue pension pots that are being sucked into a black hole of losses?
• have time on their hands for losses to be recovered as markets climb again
• those that maintain regular contributions will benefit from compound interest and unit cost averaging (investing more when prices are low and less when prices are high)
Older investors nearing retirement
• defer taking pension for a few years to build your pension a bit more
• work full time for a few more years to preserve your pension pot
• find part time work to supplement the shortage
• downsize your retirement lifestyle and expenses - look for areas to save on monthly expenses.
• use income from savings or rental instead of your pension for a few years
If you are concerned about your retirement savings losing value, set up a meeting with your deVere Acuma adviser to revise your retirement planning. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.