“Can you be sure of a comfortable retirement after the pandemic?”
Financial security in retirement is something we can never take for granted. Naturally, Covid-19 and its effects have prompted savers to reconsider and review their retirement plans. The Financial Times asks how sure we can be of a safe retirement after the pandemic.
Many made financial decisions in the crisis to shore up their finances. It is likely the long-term impacts were not considered. These vary from the effect of market downturns on pension withdrawals to pausing contributions for short-term financial relief.
The article goes on to give some tips on what to do which may be right for some. However, to give yourself the best chance of making the right decisions, get financial advice from a professional.
“Return of the pension annuity sales scandal”
The Times has looked at how competitive the market for selling retirement products new retirees is. The article questions why people fail to shop around for their income products, whether that is drawdown or an annuity, at retirement age. Sixty percent stay with the same provider they were with when they were saving money.
The article ponders why parliament voted down an amendment to the pensions bill. This would have seen an interview with Pension Wise automatically arranged for those approaching retirement. Instead, the government prefers a “stronger nudge” tactic, which looks to push retirees towards shopping around more.
Once again, to give yourself the best chance of making the right decisions, get financial advice from a professional.
“How carers and grandparents are missing out on £5bn”
Up to £5bn of unclaimed national insurance credits, which protect rights to state pension while out of work, could be sat with The Treasury. This is after many miss out on the amount they are due, according to this article in The Telegraph.
It quotes research from consultancy Lane Clark & Peacock, who believe a £5bn figure would be realistic if only 250,000 had missed out on credits at any point. Missing just one year, the consultancy adds, could be the difference of £20,000 over the course of a 20-year retirement. This equates to £5 per week. The issue could apply to carers, parents and those on sick leave for varied reasons, the article explains.
Market predictions: “The coming commodities surge” “Bitcoin is back at near-record highs and ‘digital gold’ is a better punt than the Grand National”
Three articles this week trying to outguess the markets. The first is in the Financial Times and looks at how those areas of the economy which have been devalued due to Covid 19 may be due for a comeback. The second predicts cryptocurrencies are due for a winning run.
We have not included links to these articles. This is because articles like these are as relevant when forming a long term investment strategy as using how much it rained yesterday to predict what the weather will be like in a month.