Times of economic uncertainty can make people second-guess their decisions when it comes to money.
The global financial crisis saw people panic and pull a lot of their investments.
Indications are that, this time around, they have kept a more level head and let the markets play out.
But what about when you’re approaching retirement or saving for an immovable deadline or occasion?
Adapt and overcome
A survey of 45 Personal Finance Society (PFS) members last month showed that 27% had clients who reduced the amount they are saving and spending specifically due to concerns about the impact of covid-19 on their finances.
While 29% stated their clients were saving more cash during lockdown.
That 44% of advisers have “yet to see the need to adapt or change client plans is testament to the value and importance of professional support”, said Keith Richards, chief executive of the PFS.
“We still find ourselves very much in the midst of this pandemic, with more financial impacts to come for many individuals. This month spells the end of the government’s furlough scheme, which has already resulted in businesses consulting on redundancies and some will struggle to survive until Christmas.
“While we welcomed the chancellor’ Winter package and the measures to protect viable jobs, many economists agree they have not come soon enough, nor do they go far enough to protect the many millions who will be hurting now. Unfortunately, this means we can only expect personal finances to be hit harder and for unemployment to continue to increase.
Richards continued: “The value of professional financial advice could not be overestimated during this period, nor in the months ahead. The financial situation of many could be bleak in the months to come and we have already alerted the FCA and The Pensions Regulator to a spike in requests for pension transfer advice.
“We have also urged members to remain vigilant and continue to reach out to clients to ensure they are swiftly update on any change in financial circumstances so they can help them throughout this crisis.”
