In Focus: Vulnerability  

How to retire early amid a pandemic

  • To understand why people are changing their retirement plans.
  • To be able to explain the potential benefits and pitfalls of dipping into the pension early.
  • To be aware of how different clients may react at retirement to global events such as Covid-19.
CPD
Approx.30min

"These [habits] were forced upon us, so changing back could prove trickier for both old and young.

"But when it comes to the latter, they aren’t as constrained by their expectations of wanting to return to what older generations perceive as ‘normal’."

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For Mr Morris, the pandemic can be a force for change and for good, and create increased awareness of the health of our planet – as well as people.

Therefore, he adds: "I expect people to ask more questions about the companies they invest in and to ensure they meet with their values.

"Due to the returns achieved in the past couple of years through increased exposure to sustainable funds, many clients are in the fortunate position where their wealth has grown faster than expected.

"This is great, I just hope they don’t expect this every year from now on. No goose will lay golden eggs forever."

Simoney Kyriakou is senior editor at FTAdviser

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Mr Morris says while some of his clients were bringing forward their retirement date, they were also doing what?

  2. According to Mr Lowe, the ONS statistics on people leaving the workforce suggest women are doing what?

  3. What can early retirement become to people who haven't made proper pensions provision, according to Mr Bolton?

  4. What would be "understandable" for people to favour instead of an annuity, according to Ms Springall?

  5. True or false: Mr Morris had to persuade one client to stay the course on more than one occasion as a result of the market woes in 2020?

  6. Which of the following are not one of the three things Mr Bolton suggests that clients seeking early retirement do?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To understand why people are changing their retirement plans.
  • To be able to explain the potential benefits and pitfalls of dipping into the pension early.
  • To be aware of how different clients may react at retirement to global events such as Covid-19.

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