COVID-19 Effects on retirement planning

Remember that pension savings are for the long term

The coronavirus (COVID-19) is having a widespread impact across all aspects of financial life, including retirement plans. The current global stock market turbulence, as a consequence of COVID-19, will no doubt be concerning for individuals whose pension savings are invested partly or fully during these volatile market conditions.

Managing Volatility

Diversification is paramount in uncertain times

The outbreak of coronavirus (COVID-19) has understandably been dominating the news headlines. Market fear over the escalating global spread of coronavirus has seen a sell-off across many asset classes. This period of market stress further emphasises the importance of diversification within portfolios. Investors’ objectives can rarely be met by investing in a single asset class.

Retirement Options

£19m released each day since pension freedoms launch

In his 2015 Spring Budget, then-chancellor George Osborne introduced sweeping changes to the way that pensions are taxed. The new pension freedom rules have led to the over-55s being faced with a variety of different choices when taking and investing their nest eggs.

Prior to April 2015, when most people with a defined contribution pension reached retirement age, the only option available was to buy an annuity, which involved using pension savings to purchase a guaranteed income for life.

Tax-Efficient Shelters

Use your ISA allowance or lose it forever

Fairstone Independent Financial Adviser Ian Morris explains why tax advantages such as this are vital to an individual’s overall financial planning.

You can shelter returns from tax

ISAs are a way of saving tax-efficiently that were introduced by the Government to encourage more of us to save and invest. Each tax year, the Government sets a limit on the amount you can contribute in an ISA (currently £20,000).

Planning For Tomorrow

Will my retirement income be enough to live on comfortably?

The questions our clients almost always ask us are: ‘Will I be able to retire when I want to? Will I run out of money? How can I guarantee the kind of retirement I want?’

Worryingly, it’s been well documented that many Britons aren’t saving enough in their pension for their retirement. Figures published by HM Revenue & Customs (HMRC)[1] in September 2019 show that the annual average contributions that every individual makes decreased in 2017/18 compared to 2016/17.

Preserving Your Legacy

How to keep your wealth in the family

Are you worried about leaving an inheritance to your loved ones and then having them pay tax on your legacy? No one likes to think about a time when they won’t be here, but the reality is that unfortunately some people aren’t prepared financially. Fairstone independent financial adviser Andy Fell looks at how IHT planning can help you to preserve your legacy.

Time to give your pension pot a boost?

Planning ahead for the financial future you want

Planning for retirement can be both exciting and daunting. It’s essential to structure your affairs to make sure you have enough money when you eventually retire. To give your pension pot a boost, one option to consider if your pension savings are more than your annual allowance is to take advantage of the ‘carry forward’ rules for unused annual allowances from previous years and still receive tax relief.

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