On The Cover Money Talk
SUE’S GUIDE TO Coronavirus And Your Pension Pot
Stock markets tumbled the world over due to the coronavirus pandemic. So what does it mean for your pension pot?
Most of our pension savings are invested in the stock market. Unlike cash in the bank, stock market wobbles mean the value of your pot can go down as well as up in the good times.
Pension provider Standard Life says stock markets have suffered a big shock, and it will take time to recover any losses. While this can take a while, historically stock markets can, and usually do, bounce back. Here’s how to give your pension pot a financial health check…
◆ If you’re nearing retirement, it’s worth checking the current value of your pot. You can call your pension provider for this information. Get a state pension forecast, too, at WWW.GOV.UK/CHECK-STATE-PENSION
◆ If you haven’t already done so, find and trace pension pots from previous jobs, using the Government’s Pension Tracing Service at WWW.GOV.UK/FIND-PENSION-CONTACT-DETAILS
◆ If your pension savings have fallen in value, try not to make snap decisions. Don’t suddenly give up paying in, or decide to consolidate (merge) all your pension pots into one, without taking financial advice. And if you need to dip into your pot, what’s left will still have a chance to grow again over time.
◆ If you’ve got any spare cash – say you’ve managed to spend less during lockdown – you could increase your pension contributions.
A big benefit of pension saving rather than sticking spare cash in the bank is that you get a Government boost of 20% in the form of tax relief – like a reward for saving.
SUE’S TIPS:
◆ You automatically get a bonus on pension saving with tax relief. As a basic rate taxpayer, this is worth 20%.
◆ If you’re 50 or over, you can get free and impartial guidance about either your workplace or personal pension pot from the Government’s Pension Wise service. Go to WWW.PENSIONWISE.GOV.UK
◆ This service offers a phone call or face-toface appointment to discuss your options.