If you have a defined contribution pension scheme – whether private or through your employer – your retirement savings have probably been hit quite hard by the COVID-19 pandemic over the past 12 months.
The average pension lost around 15% when the coronavirus first hit the stock market back in March 2020, before recovering 13% of the lost ground by the end of August 2020. Savers in their 30s or 40s have time on their side to potentially ride out market volatility and get their pension savings back on track.
The same can’t be said for people nearing retirement. According to a report from the People’s Pension, 74% of people either approaching retirement or aiming to retire in the near future are on course to run out of money in their early to mid-80s.
Whatever stage of your life you are at, planning for your retirement has arguably never been more important than it is now after last year’s events.
In our update, we consider:
- Why is planning important?
- How much will be required?
- Where to start
- Tax implications in retirement