Think carefully about how action taken now could affect your retirement
As more people worry about money and are struggling financially as a consequence of the coronavirus (COVID-19) pandemic, it’s likely that reducing or stopping their pension contributions may be an option to ensure they survive financially.
COVID-19: third of retirees fearful due to negative impact
Six years on from pension freedoms, non-advised savers aged over 50 are facing a ticking time bomb at retirement, according to a new survey. 66% of those saving into a defined contribution pension and 58% of those who have already retired have either no firm plans or no plans at all for their retirement finances.
Some couples may prefer to keep their finances separate, while others share everything. Whichever method you’ve chosen, when it comes to retirement saving, it’s worth planning together to ensure you’ve made the most of all the allowances and benefits offered to couples.
COVID-19 pandemic show adults are pessimistic about future improvements
Adults expect their financial wellbeing to worsen throughout the course of 2021, lagging behind any optimism of improvements to other wellbeing indicators such as mental, social and physical wellbeing once the vaccination is successfully rolled out.
When it comes to our life insurance, you’ve got options
‘Single life’ policies cover just one person. A ‘joint life’ policy covers two people and when one person on the policy dies, the money is paid out and the policy ends. You will need to decide whether the joint policy pays out on first or second death as this will determine when the policy ends.
With term life insurance policy you choose the amount you want to be insured for and the period for which you want cover. This is the most basic type of life insurance. If you die within the term, the policy pays out to your beneficiaries. If you don’t die during the term, the policy doesn’t pay out and the premiums you’ve paid are not returned to you.
A whole-of-life insurance policy is designed to give you a specified amount of cover for the whole of your life and pays out when you die, whenever that is. Because it’s guaranteed that you’ll die at some point (and therefore that the policy will have to pay out), these policies are more expensive than term insurance policies, which only pay out if you die within a certain timeframe.
The coronavirus (COVID-19) pandemic, has led to concerns and questions about how best to protect our loved ones in times like this.
If you or a loved one has to make a claim on a life insurance policy as a result of the coronavirus pandemic, it would be handled like any other life insurance claim and be paid subject to the usual policy terms and conditions.
If you were diagnosed with critical illness, would you be able to cope financially? It’s easy to think ‘I’d cope, that’ll never happen to me’ but most of us know someone either directly or through friends and family that has been affected.
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