Don’t make hasty financial decisions about your pension

  • 3rd April 2020

Pensions continue to be a safe long-term investment for your retirement so it is vitally important that you don’t make a rash decision about funds that have taken a lifetime to foster.

The Financial Conduct Authority (FCA) have issued a statement to savers to ‘keep calm’ and not to rush into making any decisions about their pensions as a response to the Coronavirus pandemic.

The Pensions Regulator (TPR) and the FCA are concerned that fears over the impact of the pandemic not only on markets but also on people’s personal finances could cause savers to become more vulnerable to scams or making a decision that could potentially harm their long term investments.

Markets have been volatile due to the global impact of this pandemic which can have an impact on pensions. This of course causes concern amongst the public however, we would urge people to be aware of scams in the current climate.

For anyone close to retirement age, the current impact on financial markets has been harmful. For those in a workplace pension, your investments are intended to return over the long term with measures in place to ease the risks faced by investors as they approach retirement.

If you have decided to invest your retirement savings yourself however, or were intending to retire in the near future, then you could find yourself in the position of having to consider a lower income or working a little longer.

The main thing is not to panic and make a knee jerk reaction. Get some independent financial advice or speak to the Pension Advisory Service on 0800 011 3797. You can also visit the Pensions Advisory Service website for more information in plain English.

Pensions continue to be a safe long-term investment for your retirement so it is vitally important that you don’t make a rash decision about funds that have taken a lifetime to foster.

Don’t fall foul of scammers

We are already seeing a rise in alerts about cybercrime so this is a time to be extra vigilant. Fraudsters will try to exploit the current situation and play on the vulnerabilities of people’s personal financial positions and fears. If you are thinking of transferring or changing your pension in any way, check who you are dealing with and only use a firm authorised by the FCA. You can check the firm on the FCA register.

Be aware of emails and calls offering high rates of return, special offers, or pressure to make a quick decision. Remember ‘if it sounds too good to be true, it probably is’. The FCA have tips and advice on their website on how to spot and avoid scams. Visit ScamSmart.

For any pension product, talk to a regulated adviser about any changes you are considering. Contact us today

A Pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.