Do you need to delay?

The financial impact and uncertainty caused by the Covid-19 pandemic is causing people to reconsider their plans for retirement.

Recent research by Legal & General suggested that one in six over 50’s will now be putting off retirement by an average of 3 years.

Of course there will be those who can afford to, but simply don’t want to retire in the current climate. After all, if your plan when you retire is to go on a holiday of a lifetime , that really isn’t an option at present, so it may be better to carry on working (or being furloughed!) and accruing some further funds toward the event.

However, many people will have seen the value of pension funds and other investments reduce and may have also seen drops in income (or in the worse cases, income ceasing completely) which has meant that they are no longer able to save at the same levels to build the level of wealth they require in order to achieve financial independence.

Uncertain times

Undoubtably the future remains unclear. When will things get back to normal? Will there be a second (or third etc ) wave of the virus? Will an effective vaccine be found? How will Governments deal with the huge debts they are building up? These are all questions in the front of peoples’ minds and to which there are no real answers or timescales at present.

What is clear though is that having a good idea what your ideal retirement looks like, knowing what you need in order to achieve that and having a plan of how to get there, is crucial when trying to ascertain the actual impact the current Covid-19 pandemic may be having on your finances.

If you know where you are heading, then you can make adjustments to the course along the way, but still end up in the right place. However, if you don’t even know where you are going, how would you know when you have arrived?

Plan the future you desire

For those who are serious about achieving financial independence, the enviable position when you can choose whether you wish to work or not, rather than needing to, we can help you understand what is required and how to get there.

You may even be surprised to find you are already there! This has happened for clients on numerous occasions, where they say “I think we would need £x to live on if we stopped work, so we’ll probably need to work a lot longer” and we have been able to say “you could have that now”. It is then amazing how peoples’ relationship to work changes when they know they can choose not to do it anymore.

Of course, your accrued wealth may need to last you for a long time, so it is important to have a well thought out plan, which is reviewed regularly and is realistic about anticipated returns and also makes allowances for the unexpected.

Get in touch

If you want to discuss how we can help you understand what financial independence looks like for you and how to get there, please get in touch and we can talk about you.

Lee Smythe MSc