Brits reassess retirement as pandemic shifts priorities By Reuters

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By Muvija M (Reuters) – The COVID-19 pandemic, which has killed more than 127,000 Britons, is causing people to reconsider their long-term savings and retirement plans, an added boon for already-existing money managers. they are benefiting from an unprecedented recovery. in the financial markets. The death of a loved one, the need to save funds for emergencies and changes in life goals influenced by the pandemic are motivating more people to have conversations about financial planning, British money managers said. “We’ve seen three characteristics emerge from this crisis: early retirees, delayed retirement, and newly motivated pension planners,” said Rosie Hooper, chartered financial planner at asset manager Quilter Plc. “This pandemic just sped things up, either out of necessity or desire.” In the first months of last year’s pandemic, investors were badly hit by a collapse in financial markets. However, massive stimulus from the government has lifted confidence ever since. While some have used the money for expensive purchases like cars and houses, others are taking it out. A survey by the country’s bureau of statistics (ONS) showed that one in eight workers, or 13%, of those aged 50 and over said they had changed their retirement plans, with 5% who would retire before and 8% planning to make him retire later. In any case, people are now talking more about their retirement plans, wealth managers said. “There are signs that you are helping people make a decision,” said Sarah Coles, a personal finance analyst at Hargreaves, which manages 1.5 million clients. “LEAVE IT ALL BEHIND” The crisis has also changed priorities: some want to spend more time on pet projects or with the family, as many continue to work from home despite vaccination campaigns and companies reduce the real estate footprint. “For some people, it has opened their eyes to the commitments that their work life has imposed on them, so they are eager to leave it all behind as soon as possible,” Coles said. Tom Selby, a senior analyst at AJ Bell, which has 346,700 clients, said that new clients on its investment platform increased by nearly two-thirds in the first three months of this year from the previous year. Most of them invested long-term through savings and pension accounts. Total funds under management in the UK reached a record 1.4 trillion pounds at the end of 2020, while inflows tripled to 31 billion pounds, data releases / ps52bn-inflows-active-funds-December-second-highest-record inflows from the UK investment industry trade body Investment Association. “Everyone will know someone who very sadly passed away as a result of COVID … that will make people consider their life plan, their life goals, when they want to retire,” said Andrew Croft, CEO of blue-chip asset manager St. James’s Place. “People will consider it a lot more. If they come to the conclusion that I may want to retire earlier than originally planned, what you are going to do is find your way to a financial planner.” Croft, however, added that it was too early to call this a trend. “It could be that in 12 months everyone will have forgotten and moved on. So I think he has some way of moving forward.”