It has become a quick fix for more over-55s, but it can come at a high price in retirement, writes Shane Hickey
Our view continues to be that ensuring the right level of portfolio risk/return, and appropriate levels of contributions of at least 15% of salary over time, are critical to ensuring the type of lifestyle savers expect in retirement.
For those in this fortunate position, after 6 months of extra ‘lockdown’ cash being added to their bank balance, now’s the time to review future savings and investments to get a better long term return.
Total scheme assets decreased by less than 0.1 per cent over the past month, to £1,775bn, representing a 5 per cent increase since the start of the year.
Fidelity Investments suggests a retirement savings rule of thumb for individual which calls for saving 1x your salary by age 30, 3x by 40, 6x by 50, 8x by 60 and 10x by age 67.