Could you feel more confident about your retirement?
For Tanya, a teaching assistant from London, the last 12 months offered time to reflect on what really matters about her retirement plans.
“Covid has really altered my thinking,” she reveals. “Suddenly the priority is not work, the priority is that I want to enjoy being with my son. I’m going to be a grandmother soon as well, and I want to be as safe as possible so I can be with my granddaughter.”
At 62, Tanya had expected to work three more years yet before retiring. But with lockdown preventing her meeting up with friends and family, retiring early suddenly held huge appeal.
A great opportunity to think about your retirement
Tanya’s story is one being played out across the UK. March 2021 research by Legal & General shows there are 1.3 million over-50s who now plan to retire early due to the pandemic.*
Unfortunately, others are feeling less sure about their ability to retire. A further 1.45 million expect to delay retirement by an average of three years, because of Covid. One in five over 50s believe they will have to work indefinitely.
What this suggests is there are different levels of confidence on when, or even if, we can retire.
Feeling financially stronger
You need a pension fund big enough to last as long as you live, so you don’t run out of money.
That sounds complicated to work out, which is why a lot of people use a financial adviser to help them prepare. This is the path Tanya took by speaking to Tom, a financial adviser at Skipton Building Society. “What I really liked was that Tom went into great depth to understand my particular situation,” she reveals. “I felt he really wanted to understand what I wanted to achieve.”
Discovering your options to make better plans
Tanya initially met with Tom before Covid. Retiring wasn’t in her thoughts then. But whilst past performance is not a guide to future returns, the way her investments are performing, so far, has given her the confidence to take the plunge early. Tanya will officially stop working in July.
She enthuses, “I get very excited when I see the returns I’m getting. It’s all been done through the level of risk I want to take.
“But as my son keeps reminding me, I’m not going to take my money out today, tomorrow or in five years’ time. You always have to look at any investment over the long haul. We can’t be complacent.”
It was earlier this year that Tanya began to think about whether she could bring her retirement date forward.
Part of the value Tom provided was helping Tanya understand all the extra things she might be able to do in retirement. Tanya explains, “I have a son who lives in Brazil, so it would be great to visit him. Tom has encouraged me to save a bit more, so I can do those extra things and have more of a cushion for unforeseen expenses.”
As Tanya’s experience shows, sometimes we need the help of an expert to tell us it’s okay to make a big decision. “I literally said I will not retire if Tom has any doubts. I needed him to tell me if I had enough money to retire early.”
After the last year, the appeal of a happy and fulfilling retirement might now feel stronger than ever.
As the end of the pandemic looks to be in sight, this could be a really good moment to look at your future. Just like Tanya, speaking to one of Skipton’s financial advisers about your retirement could really help.
You don’t even need to leave the house to plan your future with an expert. Skipton offer appointments over the phone – or via Skipton’s easy-to-use video appointment service, Skipton Link.
- It all starts with a free telephone consultation on whether financial advice might be right for you.
- The next step would be to arrange a review with one of their advisers – who can meet you at your local Skipton branch, or through their video appointment service, Skipton Link.
- Skipton will research and present recommendations personalised to your needs.
- There is no pressure to act on their advice – or an upfront fee to pay to hear it. You’ll only be charged if you decide to act on their recommendations and these will be made clear to you.
A pension is a long-term investment and your capital is at risk. Your fund value will fluctuate and can go down. You could get back less than you paid in. Your eventual income will depend upon the size of the fund at retirement, future interest rates and tax legislation.
Silversurfers is an Introducer Appointed Representative of Skipton Building Society, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority, under registration number 153706 to provide Restricted financial advice. The Financial Conduct Authority does not regulate most forms of inheritance tax planning. Should you take advice from Skipton Building Society, Silversurfers will receive a fee for the introduction. To help maintain service and quality, some calls may be recorded and monitored. Calls are free from both landlines and mobiles.
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to the accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
Latest posts by Skipton Building Society (see all)
- Could you feel more confident about your retirement? - July 15, 2021
- One year on from the pandemic …what have you learnt? - June 10, 2021
- Take control of your retirement now - May 17, 2021
- Could an investment portfolio help your retirement? - April 1, 2021
- Could your retirement plans be more tax efficient? - March 12, 2021
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