Your clients’ short- and medium-term plans might have changed over the last 18 months, in response to life events or shifting priorities during the pandemic. Long-term goals, though, are unlikely to have altered dramatically. This means that your clients’ long-term plans needn’t have changed either.

A recent report from Aviva suggests that this might not be the case. The survey states that Covid-19 has altered retirement plans for 54% of UK adults, with more than a quarter (27%) feeling less able to cope with unforeseen financial events.

Sound financial advice comes from understanding an individual’s dreams – and what they might cost – and then putting a plan in place that will make those dreams a reality.

At Boolers, we do this for all of our clients. We could do it for your clients too.

The pandemic has affected clients’ retirement plans in different ways

We all have an idea of what our dream retirement will look like. It’s a picture that probably looks the same now as it did pre-pandemic.

While stock markets rise and fall regularly, the volatility caused by coronavirus was hard for investors to ignore. Not only that, but the huge drops in market value were combined with the mental strain of lockdowns, worries around job losses, and health concerns directly associated with the virus.

The BBC reported in February 2021 that the pandemic had created 6 million “accidental” savers. For those who were able to keep working, saving became easier during lockdowns when travel and entertainment costs – and opportunities to spend – were severely diminished.

Accidental savings have allowed some to consider earlier retirement, but for others, the opposite has been true. Among those aged 35 to 44, 68% have seen a detrimental impact on their retirement plans during the pandemic, whether through the impact of furloughing, job loss, or the need to suspend workplace pension payments to make ends meet.

Your clients’ financial security might have been affected

An important part of financial advice is building resilience. This might come in the form of an emergency fund, managing savings and investments, or financial protection products that cover job losses, accidents, or death.

Recent reports suggest that 27% of UK adults feel less able to cope with a financial shock now than they did before the pandemic. This figure rises to 29% for those aged 44 to 54.

The report also found that more than half (53%) of UK adults have suspended or cancelled a planned life event during the pandemic, with:

• 16% holding back on starting a new job
• 13% postponing the purchase of a new house
• 12% thinking twice about starting a new business
• 10% pausing trying for a baby
• 10% postponing a wedding.

Financial advice can help your clients get their lives back on track.

How Boolers can help create long-term plans that last

1. Your clients’ retirement plans

If your clients have suspended or lowered their pension contributions during the pandemic, restarting these at their pre-pandemic amount should be a priority. Pensions are a long-term investment – maximising returns and compound growth is key to ensuring a comfortable retirement.

We can help your clients to revisit their budget and household finances to ensure that their retirement plans are still fit for purpose and that their goals remain attainable. We can also help make any necessary changes, freeing up disposable funds to help them pay their future selves first.

2. Your clients’ ability to weather a financial shock

We would always recommend an emergency fund of between three to six months of household expenses. If the pandemic has eaten into your clients’ emergency fund, rebuilding it is vital.

Your clients should also be looking to keep on top of any Covid-related debt, especially where that debt has high interest.

Individuals also need to understand the potential impact of a career change or job loss on the level of financial protection they have.

Life cover offered by an employer will usually cease when employment ends, and other benefits might be lost too. We can help your clients understand the cover they have in place, identify gaps, and advise on the best ways to fill those gaps.

3. Later life and estate planning

Even where the financial impact of the pandemic hasn’t been keenly felt in the short term, its repercussions could be far-reaching.

The unprecedented level of borrowing has led to freezes in thresholds and stealth taxes that could alter your clients’ long-term plans. It’s never too early to start thinking beyond your clients’ retirement date, to the potential costs of later-life care and the money they want to leave to the next generation.

Get in touch

If you have clients who would benefit from long-term financial planning in the wake of the pandemic, whether to help manage their retirement, protection, or estate planning, please get in touch. Email enquiries@boolers.co.uk or call 0116 240 7070.

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

Workplace pensions are regulated by The Pension Regulator.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.