plan for retirement

Are You Still Confident in Your Retirement Plans?

havenifa

havenifa


Posted on: 17th August 2022

Uncertainty. It is everywhere and within everything right now. If you look at how the 2020s have already played out in just two years, we have seen a global pandemic, a housing shortage, a war in Ukraine and the cost of living crisis severely disrupt absolutely everything we thought we knew about our financial standing. Naturally, when the pandemic took effect, many people were quick to access their pensions out of fear and desperation. This begs the question now – how confident are you that you can reach your intended retirement goals, and have you plan for retirement effectively?

An Uncomfortable Age

Studies show that people aged between 55 and 64 have a lot less confidence regarding their retirement than they did before 2020, and the biggest hike in worry relates to the rising prices of everything affecting all plans.

Planning for the future now seems like something impossible to predict. Many people now live in expectation of things going awry more often than not when looking at the track record of the 2020s so far. Retiring comfortably seems like a distant aspiration in today’s world – especially as how we are used to living comfortably has now become a lot more expensive. Inflation and rising prices are putting the squeeze on everyone.

In recent research, it was revealed that 33% of UK adults have constant worry over rising prices of everyday items, which is up from just 27% in 2021. Those aged over 55 are the most likely to worry over day-to-day items rising in price, and women are more anxious over them than men.

Low Confidence

Retirement confidence is falling for the over-55 crowd over the last year, with a majority starting to realise that their savings may not be enough when looking at the unexpected turmoil affecting day-to-day living costs.

One reason why many over-55s have more worry about inflation could be that they typically have a larger proportion of their savings in deposit accounts that are not keeping pace with the rising prices. Rising inflation presents a dilemma for cautious investors, uncomfortable with the volatility that investing in stock market-based funds can bring whilst also concerned about their savings failing to keep up with rising costs.

Rash Decisions

With so much uncertainty and panic naturally some rash thinking and decision-making can make the situation much worse. Concerns about what is happening now are bound to have a long-term effect on your retirement future.

This makes it imperative that you get sound advice from experts not just on how to manage the cost of living crisis, but also on how to restructure your route to a comfortable retirement. Independent financial advisers Cheshire are the ideal source of help during these uncertain times in helping to navigate a structured course of action back into your retirement planning Cheshire.

Contact the team at Haven IFA today to get back on track and plan for retirement through expert advice on your financial focus.