SOUND TOO GOOD TO BE TRUE?
Now, more than ever, you need to stay on your toes and be extra vigilant as an increasing number of fraudsters descend to take advantage of the situation. UK fraud prevention groups are warning individuals to take heed, following a massive increase in the number of scams seeking to exploit the pandemic.
To equip yourself to stay ScamSmart; check the FCA website www.fca.org.uk/scamsmart. In March, Action Fraud revealed there was a colossal 400% increase in reporting of scams. You may think it will never happen to you, but as these scams increase in sophistication, we are all vulnerable and it becomes harder than ever to distinguish them from the real thing, so remember:
• Do not click on links from senders you do not know
• Reject offers that come out of the blue
• Never give out personal details
• Be wary of deals that sound too good to be true
• Take the time to make checks and seek financial guidance.
RESILIENCE SAVES THE DAY
The need to develop a resilient retirement plan has been vividly highlighted in recent weeks. Although market turbulence will impact all pension holders, those with a carefully-considered, clearly-defined plan will inevitably be in considerably better shape to navigate any market volatility ahead. On the approach to retirement, a larger proportion of a pension fund will be ‘lifestyled’. This means it transfers to less risky assets, like cash, gilts or bonds, thereby tempering the overall level of investment risk.
IN IT FOR THE LONG HAUL
Making decisions based on short-term economic disruption is exceptionally risky. Usually the optimum strategy is to be patient, resist the urge to sell and maintain a long term investing philosophy. Pension savings are intended for the long term. For younger investors, there’s plenty of time for markets to recover and pensions to achieve growth aspirations before retirement income is required. Those closer to retirement need to take stock of their full complement of retirement resources before making any decisions. This will involve reviewing your pensions, savings and investments; in addition, we can quantify your level of income and determine whether this has been impacted by recently-cut dividends or reduced savings rates.