Expert Pensions

Protect Your Pensions During A Crisis- If You’re Retired And Receiving An Annuity (Guaranteed Income For Life)

The COVID-19 crisis has taken everyone by surprise resulting in stock markets being significantly impacted. This is extremely worrying and stressful for all pension investors, both pre-retirement and post-retirement. It is highly recommended that you speak to a pension advisor and review your fund. Only then an appropriate investment strategy can be determined. Market downturns can also be a positive opportunity to enhance your pension investment value.

Approximately 62% of workers in Ireland are members of a Defined Contribution (‘DC’) pension scheme. This is where your contributions are paid into a fund that invests in the stock market. Funds typically achieve investment growth over the long term; however, in the short to medium term, the investment value can rise and fall due to global economic events such as COVID-19. The stock market has performed extremely well over the past 10-12 years whereby investments have achieved higher than average returns.

Here’s our advice for anyone who has already retired and is receiving an Annuity (guaranteed income for life)

  • COVID-19 will have had no impact whatsoever on your pension.
  • Your annuity is guaranteed for life and is completely unconnected to the financial markets.
  • In times of market downturn, annuities are very favorable; however, in times of market growth, annuities can appear to be poor value in comparison to an ARF.
  • Over your retirement lifecycle, having a guaranteed income during multiple market crisis’ is priceless.

Making premature decisions without knowing all your options can result in further negative impacts to your pension fund value. Expert Pensions will understand your overall circumstances, review your pension fund(s) and outline all appropriate options for your consideration.