Future financial health

October, 2020

Taking the time to take back control over retirement savings

With all that has been going on in the world this year, for many people it’s been really difficult to feel as though they’re in control of much. However, some people have been in the fortunate position of being able to take the opportunity to invest in both their physical and emotional health while in lockdown.

Worryingly, though, research suggests that some people might have overlooked their future financial health[1] as result of the coronavirus (COVID-19) outbreak. So as life begins to normalise, now is a good time to take back some of that control, starting with retirement savings.

TIME TO REVIEW AND BETTER ORGANISE FINANCES

Establishing financial security is an important goal, but it doesn’t happen overnight. We need to cultivate good financial habits over our lifetime to reliably grow and maintain our retirement nest egg. All of our financial decisions and activities ultimately have an effect on our financial health. Of those who spent the months of lockdown working from home, some might have been able to make financial savings as a result. Some employees, including furloughed employees, will have been entitled to employer pension contributions that may now need reviewing. People entering or approaching retirement in 2020 should carefully plan how and when to access their pension in order to maximise annual allowances and tax-free benefits.

MORE BADLY ORGANISED THAN BEFORE THE PANDEMIC

According to the research findings, 21% of people say they have taken the time to review and better organise their finances since the start of the pandemic. The younger generation of 18-34-yearolds (31%) were more likely to have organised their finances than those aged 35–54 (22%) and 55+ (13%), while men (23%) were more likely to have done this than women (19%). Just 9% said that they hadn’t reviewed their finances and that they were more badly organised than before the pandemic. This was much more likely among men (42%) than women (32%) and also more common among the younger generations, with 49% of 18-34-year-olds compared to 36% among 35-54-year-olds and 28% of over-55s.

10 TIPS TO ENJOY THE RETIREMENT YOU WANT

For the previous six months, understandably, people have been focused on the short term. Retirement savings may have been neglected by many.

  • Review your spending habits and consider if you have the scope to save a little more each month.
  • Look up your annual benefit statements – you may have saved with more than one employer’s pension scheme.
  • Think about what financial milestones you’d need to reach in order to increase your pension contributions and review your investment choices.

 

Affinity Integrated Wealth Management is a trading style of Buryfield Grange Limited. ‘Buryfield Grange Limited’ is authorised and regulated by The Financial Conduct Authority. Not all services provided by Buryfield Grange are regulated by the Financial Conduct Authority. ‘Buryfield Grange Limited’ is registered in England and Wales at ‘Inspire House, 20 Tonbridge Road, Maidstone, Kent ME16 8RT Company registration numbers 4568338.

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