Pension and investment worries: what can I do?

The coronavirus pandemic has brought about its fair share of worries. When we’re not worrying about our health and that of our loved ones, our investments provide plenty of opportunities to fret. However, amidst all the market volatility and plummeting oil prices, there are practical steps we can all take to safeguard our investments (and our sanity!), as Acumen explains here.

Why is investment planning important?

In normal circumstances, investment planning is important to understand the risks and rewards associated with any investments. During the Covid-19 crisis, and all the financial uncertainty that comes with it, prudent planning takes on even greater significance. Here are our top tips for weathering the storm.

Find the ideal blend

Adopting a “safety first” approach has never been more relevant than during the coronavirus crisis. This also rings true for your investment portfolio. Now is not the time for speculative dabbling. A diverse blend of bonds and equities can help cushion the blows of a volatile market. In crises like the Covid-19 pandemic, a combination of the right blend of “safe” investments and sitting tight are highly recommended.

Consider your risks

One thing we do know during these strange and uncertain times is that the global markets will recover. They’ve done it before, and investments will bounce back as a result. The question for you is: how long can you afford to sit it out? If you are nearing retirement, lower-risk investments are an important component s=to shield you from short term volatility and make sure you have access to capital and income. However, if you’re earlier on in your career, a higher degree of risk might be prudent to reap the rewards later.

Access government support

The good news to come out of Whitehall is that the government will cover minimum auto-enrolment employer pension contributions of 3% and employer National Insurance Contributions (NICs) on furloughed salaries and the Job Retention Scheme is being extended, albeit with more contributions being required from employers than was initially the case. If you are furloughed, it is down to your employer’s discretion to foot the bill themselves for salary sacrifice schemes, furlough top-ups, defined benefit pensions and alternative auto-enrolment calculations.

Try not to panic!

The economic shockwaves of the Covid-19 crisis will be felt for some time to come. However, as we mentioned earlier, the markets have a reassuringly predictable ability to recover from major global incidents. Take 9/11 and the 2008 financial crisis, for example. As catastrophic as those events were, green shoots eventually appeared and they are doing so again this time. As difficult as it may have been, holding your nerve through the worst of the stock market volatility back in March was the right thing to do.

Call the experts

Of course, some extra reassurance can be helpful. Seeking the advice of an adviser who understands your needs, plans and aspirations can help you to achieve your goals. Acumen offers comprehensive independent investment advice and investment planning, including asset allocation, appropriate investment selection, risk mitigation, inheritance tax mitigation and more. Our advisers are always ready and willing to help and this applies equally to existing clients and anyone who is not yet a client but would just like to arrange a chat to see if we can help.

For more information about Acumen’s investment services, or to arrange a phone consultation with one of our advisers, please contact Acumen today on 0151 520 4353 or email info@acumenfinancial.co.uk.