This time last year, interactive investor launched the inaugural Great British Retirement Survey and a whopping 10,000 of you got in touch to share your expectations and experiences of retirement. The results provided a fascinating insight into retirement in modern Britain.
The coronavirus pandemic has sent shockwaves through the global economy, affecting the finances of people around the world.
From investments and pensions, to savings and travel, we round up how the virus could impact your money.
What does coronavirus mean for investments?
Stock markets around the world have tumbled to their lowest levels since the 2008 global financial crisis owing to fears about the coronavirus. Uncertainty over the spread of the disease could continue to impact markets throughout the world.
Pension savers face a greater risk of being targeted by fraudsters, research from the All-Party Parliamentary Group on Pension Scams (APPG) has revealed.
The government has advised more people to stay at home amid the coronavirus crisis, which could increase their chances of being contacted via phone or online.
Investment markets plunging over recent weeks may also make people more susceptible to pension scams as they attempt to recover losses from their retirement savings.
Early in January, I came across a tweeted witticism that ran along these lines:
1 January: 2020 off to a good start!
2 January: Australia on fire
3 January: WWIII declared
One of the most frequently asked questions about pensions is “how much do I need to save?”. But despite the best efforts of government and the pensions industry, a one-size-fits-all answer is hard to come by.
In previous generations, the question didn’t really arise for most people. A worker simply stayed in the workplace scheme, contributed in line with the rules, and with a long working life could expect a pretty decent retirement.
For those at retirement who choose to take advantage of the pension freedoms introduced in 2015, the key attraction of this option is likely to be its flexibility. By opting to leave your pension invested, there is scope for capital to grow, income is generated and on your death any unused capital can be passed on to your family.
Everyone can have both an Isa and a pension – and as each type of tax wrapper has advantages and disadvantages, investors should try to make the most of both products.
Retirement planning can be a daunting task – with so many options available since the pension freedoms, it can be easy to feel overwhelmed with the amount of complex information available. According to the Pensions Policy Institute (PPI), many people struggle to understand important financial fundamentals when it comes to retirement, such as tax, inflation, or how retirement income products work.
Money Observer editor Faith Glasgow and deputy editor Kyle Caldwell examine whether an Isa or pension is the better wrapper for your money at the end of the tax year.
In addition, the pair discuss retirement income strategies, including how to boost income during the first year.
Freeing people to do what they want with their pension savings, rather than forcing them to buy an annuity, has proved a very popular move. But that freedom means people now have difficult choices to make and need help in making a decision that is right for them.