The last thing you should be worrying about when you’re retired is your finances. However, with recent falls in the stock market, you could be feeling worried about the value of your pension if you’re approaching the end of your working life.

As always, if you’re concerned about your pension or the impact these falls will have on it, then consult a financial advisor who can help you understand your current circumstances and options.

In the meantime though, here are some answers to several questions that you may be looking for:

Is it worth delaying my retirement?

As with most investments, whenever there are any falls or dips in the stock market, you should always try and give your money the chance to recover and avoid withdrawing money from your pension until it has done so.

This could mean that you may need to delay the start of your retirement, and while it is not ideal, it could be crucial in allowing your funds to recover to ensure you can live a comfortable life in your later years.

However, this may not be an option for some people. Instead, phasing out your retirement by transitioning to part-time work could instead be a necessary move as it slows down your working life, but also decreases your reliance on your pension pot.

This will all be dependent on your circumstances and retirement goals though, so to make sure you’re making the best decision for you, consider consulting a financial advisor.

Should I jump ship or should I stay invested?

It’s easy to react quickly when something negative happens to your investments. However, it is never wise to rush into things.

Investing will always have an element of risk, and stock markets are volatile, so dips throughout the duration of your investment will be inevitable.

However, as your pension is needed to last throughout your retirement, you can be put in a compromising position. While it isn’t advised to take on more stock volatility as you reach later life, similarly taking no risk may not be a smart decision either.

There really is no one-shoe-fits-all approach when it comes to investing, especially when it comes to pensions as everyone has different needs.

To minimise your risk where possible, it is always advised that you maintain a diversified portfolio which spreads your risk across different asset classes according to your needs and risk profile.

For advice on what to do if you’re seeing a fall in your pension value, and guidance on building a rewarding, long-term portfolio, consult a financial advisor!

I need to access my retirement income now, what does this mean for me?

As we mentioned previously, continuing to work once you reach retirement age may not be an option for some people, which is why planning ahead and structuring your pension/retirement plans is necessary in making sure you have enough funds to last throughout several decades, and to make decisions that leave you in the best place possible.

You should avoid making big pension withdrawals when the value of your pension has fallen. However, if you do decide to withdraw money, then you should try to avoid taking out excess amounts which could be sucked up through rising inflation.

Things get a bit complex in this area as you should also consider how best to withdraw your income in the most tax-efficient way possible – while it can be confusing to navigate, being aware of your personal tax allowances for example can help to reduce your tax burden.

You should always consult a financial advisor before making any major decisions about your pension or investment choices. They will be able to guide you down the best route possible for your retirement needs and current circumstances.

So what can I do now?

The current stock market situation and state of market inflation can be a concerning time for those approaching retirement.

As with all investments and investment-related products such as pensions, the decisions you need to make will be dependent on your personal circumstances which is why you should always consult an experienced financial advisor. They will consider your retirement goals and talk through your options to make sure you’re making confident decisions about your money.

Coffey Brooks are a team of Independent Financial and Mortgage Advisers based in Clacton-On-Sea, Essex and are directly authorised and regulated by the Financial Conduct Authority.

Disclaimer – The value of investments can both rise and fall, and you may not get back what you initially invested. The information posted in this article is an example which is correct to the best of our knowledge, however, it is not a recommendation to pursue certain strategies. Please consult a qualified and experienced financial advisor who will consider your personal circumstances and suggest relevant solutions.