THE Office for National Statistics (ONS) is akin to a barometer on what's happening in both our country and its economy.

For this simple reason, I always keep a close eye on what it reveals. What's more, it often yields terrific insight into what might lie ahead.

And a Tweet posted recently by the ONS got me thinking...

It read simply: "Recent labour market data shows that adults aged over 50 years continue to drive the increase in economic inactivity."

A quick deep-dive into what's actually unfolding reveals that between May to July 2022, there were 386,096 more economically inactive adults aged 50 to 64 years than in the pre-coronavirus (COVID-19) pandemic period (December 2019 to February 2020).

The Over 50s Lifestyle Study (OLS) was designed to gather more information from adults aged 50 and over to better understand their motivations for leaving work and whether they intend to return.

The ONS also found that more than half (55%) of those aged 60 to 65 years were confident or very confident that their retirement provisions would meet their needs, compared with just over one-third (38%) of those aged 50 to 54 years.

Let’s begin by stating the obvious, there are clearly many thousands of people who don’t believe that their pension pots will cover the type of retirement they aspire to.

And the headline figures also have profound repercussions for everyone’s future financial lives on myriad different levels.

For a start, I’m concerned that many of them could see a rapidly diminished ‘quality’ of retirement.

By ‘quality,’ I mean the amount of disposable income they have available

If investors don’t continue making contributions to their pension pots until a pre-agreed point in time – which should be pre-agreed with an independent financial advisor - then there’s an obvious concern that that their disposable income in retirement will be radically reduced.

And then there’s the implications of drawing a pension earlier than was previously expected…

Between May to July 2022, I’m aware ‘many hundreds of millions of pounds were withdrawn from pensions’.

At this point in time, it’s possible to draw private pension benefits without penal tax charges from the age of 55 – although this is expected to rise to 57 from April 2028.

I’m going to stress the importance once again: there are frequently serious financial implications of not sticking to a pre-agreed investment strategy…

If you are over 50 and concerned about the impact of everything that’s unfolding on your pensions, the best course of action would be to review how they’re set up, ensure that your overall financial plan remains robust, and meets your current and future needs.

The entire team at Future Life Wealth Management remains here if you have any concerns.

When it comes to investment strategies, my message in recent months has been consistent: ‘Keep calm and carry on.’

I’ve no intention of deviating from that regardless of how grim the ‘economic noise’ might get – and neither must you.

If you need advice on managing your investments, Future Life Wealth Management is here to help. So please don’t hesitate to get in touch with any questions you may have HERE.