Why lockdown could be your life without the right financial planning

Posted on

Life as we know it has changed dramatically in the last few weeks. We’ve spent much more time at home than we probably ever have before. We’ve taken on new roles, from chefs to schoolteachers. And, we have adapted to new ways of working remotely and keeping in touch with friends and family.

As the first tentative steps are taken towards easing lockdown and returning to normality, it’s worth reflecting on this fact. Being stuck at home as we have, and not being able to go out and do the things that we would normally do, could be everyone’s new reality without the right financial planning.

Lockdown could be like a life without protection…

In recent weeks, we have sampled what life is like when we’re unable to live it as normal. So, it has become much easier to envisage what you, your partner, and your family’s life would look like if long-term disability, a serious illness, or the death of a loved one brought everything crashing down.

What would your family do if you were unable to work after an accident? Or if you became seriously ill? Or, if the very worst should happen, and you pass away?

Protection is designed to provide a capital injection when you need it the most. This could be in the form of:

  • A monthly income to enable you to maintain your important financial commitments if you were unable to work for an extended period
  • A tax-free lump sum if you were diagnosed with a serious illness. You could take the time off work safe in the knowledge that you had a financial cushion to replace income, repay debts or pay for medical care
  • A lump sum for your partner, family or dependents to repay your mortgage and remain in the family home if the very worst happens.

Now is a great time to review your protection and to ensure you have the right cover in place. Speak to us to find out more.

Will your retirement provision mean a lengthy later-life lockdown?

Now we’ve lived through lockdown, it’s easy to see what restrictions there would be on your lifestyle when you are older if you don’t make sufficient provision for your retirement.

In 2019, consumer group Which? surveyed thousands of their retired members to see where their money is being spent. They found that, on average, households spent a shade under £2,220 a month, or around £27,000 a year.

This covers all the basic areas of expenditure (which had a combined cost of £17,800 per year on average) and some luxuries, such as European holidays, hobbies and eating out.

The study also found that you would need £42,000 a year if you include luxuries such as long-haul trips and a new car every five years.

The same study revealed that your pension pot would have to be worth:

  • £298,000 to get £27,000 a year from an annuity
  • £215,450 to get £27,000 a year from income drawdown
  • £695,000 to get £42,000 a year from an annuity
  • £502,775 to get £42,000 a year from income drawdown

Note: these figures also factor in the State Pension

If you want to maintain your lifestyle in retirement, it’s important to think carefully about whether you’re making adequate pension provision. If you don’t, your later years could see you reminiscing about the old times as you unwittingly recreate your lockdown experience.

Get in touch

If it’s time to review your protection arrangements, or you want to book a review of your retirement planning, please get in touch. Email enquiries@blackswanfp.co.uk or call 020 3828 8100.

We aim to keep our clients up to date on interesting and relevant financial news.

You can sign-up to receive our monthly newsletter by email, even if you’re not yet a client. Sign-up using the form below.

Client testimonials

I have always found Black Swan to be caring and understanding of my quirky lifestyle. I always feel they try to get me the best returns while respecting my current needs.

Sally Muir

A client since 2011

We would be very happy to recommend the support and service we receive.

Valerie Locks

A client since 2010

I have always been completely useless regarding finance - thankfully our financial adviser is not! I've retired with far more than I ever expected and investments continue to grow safely. So - thank you!

Bernadette Jane Warner

A client since 2000

Very happy with the professional service I have received and feel a lot happier now with my finances put in order.

Martin Field

A client since 2011

Julie Cooper was recommended to me by a work colleague. She has been very helpful, professional and has explained everything well. I would definitely recommend her services to anyone else who are interested in a financial review.

Steven Rooke

A client since 2018

…Service has been first class.

Hugh Fells

A client since 2012

My face to face meetings with Rob Young and Jessica Lyons have always been very open and understandable. My questions have been answered clearly and I have left feeling that my financial matters are in good hands.

Sandra Jack

A client since 2000

[A] safe pair of hands in a complex financial world.

Gary Middlehurst

A client since 2003

A reliable company with good communication skills and good knowledge of the financial markets.

Alan Evetts

A client since 2014

Maureen Pembridge is a long-time trusted advisor to our family. The market might fluctuate but her attention to detail is consistent.

Linda Burnard

A client since 2000

I am pleased to recommend Julie as a trustworthy financial advisor. She explains financial jargon in plain language, and always listens carefully to my particular financial needs and has helped me make the best of my savings.

Carolann Samuels

A client since 2010

I have always been satisfied with the way that Black Swan has handled my account. And I have always found the staff very helpful whenever I need to call the office.

Robert Anthony Matthews

A client since 2012

An excellent personal service from a person I know and trust.

Michael Dalton

A client since 2010

I am getting a very good services from Black Swan, they have got my investments sorted out which was in a bit of a mess.

Roy Jakens

A client since 2012

A good, efficient team providing clear ideas to shape a winning strategy.

Adrian Michael Levenstein

A client since 2011

Black Swan is a company to be trusted, with friendly staff and professional advisors.

David Brian Jennings

A client since 2017

I have been with Black Swan for many years. I have never wished to change anything. They give a good straight forward service.

Martin Barrett Brooks

A client since 2010

Andy Peters has been invaluable in firstly combining several pension pots and then giving excellent investment advice. It has given us a great deal of comfort to know that our financial affairs are in such good hands.

James Guillum Scott

A client since 2014

I find my financial advisor easy to talk to and feel that she understands my lifestyle. She is always available for help when I need her and explains in words that I can understand.

Margaret Ena Glasgow

A client since 2000

Andy is a first rate Director, excellent communicator and leader.

Ross Perry

A client since

Black Swan Financial Planning and Andrew in particular, are very clever at working out how risk averse we are, and coming up with solutions that we feel comfortable with. We are happy in the knowledge that we can continue to enjoy a comfortable retirement. Andrew Peters is a very, very friendly person who is great to chat to and easy to deal with. He explains things very clearly in layman’s terms, and if we still don’t understand, he explains it until we do!

Alan & Jane Dyer

Clients since 2012

We have always found Rob [Young] to be very approachable and knowledgeable. We have every confidence in the advice given and feel comfortable with the decisions we’ve made. There are certain opportunities that we wouldn’t have known about if Rob hadn’t brought them to light, which makes the advice good value for money as far as we’re concerned.

Peter & Pauline O’Halloran

Clients since 2013

Rob [Young] is extremely knowledgeable. I knew nothing about the different types of trusts which will not only secure my income in retirement, but also leave a legacy for my children. I’m glad that I sought his advice when I did.

Sarah Wilson

A client since 2015

I am extremely happy with the service afforded to me by the company and my adviser Julie Cooper.

Geoff Coxell

A client since 2010

My wife and myself have been dealing with Black Swan for a number of years. We have met with different representatives from the company over the years and have found all very helpful in their own way. We met with James [Anderson] a few years ago and found him very helpful and knowledgeable. He keeps in contact with us on a regular basis. We find the Company information very helpful and we feel very secure with our finances.

Andrew Kirchen

A client since 2015

I have always found my adviser to be easy to contact, very professional in his approach, yet friendly and understanding. I have a sense of an experienced company behind him, really on the ball financially and with good standards.

B McBean

A client since 2011

Partner with the most reliable and experienced team of advisers

Enter your details & we'll be in touch to discuss your needs.
Alternatively, contact us directly and speak to a member of the team.

    Subscribe to our newsletter