Martin Lewis gives insight as man fears for pension & life savings in coronavirus pandemic
The coronavirus outbreak has hit the UK, with 1,372 people having tested positive for the virus as of 9am onMarch 15, 2020. Public Health England has said that of these cases, 35 patients who tested positive for COVID-19 have died.
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As the health problem continues to unfold, the coronavirus pandemic may also be having – or have the potential to have – an impact on many people’s personal finances.
Last week, the Bank of England cut the base rate by 50 basis points, from 0.75 to 0.25.
The temporary measure was announced hours before the Chancellor of the Exchequer Rishi Sunak delivered the 2020 Budget.
While it may be good news for some people when it comes to mortgages, the emergency move has potential to negatively impact savers and the interest rates they can access.
Yesterday, Martin Lewis as on hand to offer some money-themed suggestions for This Morning viewers.
During the phone-in, a caller, called Tom, explained that they had invested a significant sum of their money in pensions.
The ITV viewer explained: “I’ve recently invested all of my life savings and pensions in stocks and shares.
“I’m now seriously worried about losing it all. Do you have any advice to help me cope with this?”
Responding to the caller, Mr Lewis replied: “Well if you’ve got a nice widespread you shouldn’t lose it all.
“The most important thing to say is, if you’ve just invested, I hope you’ve invested for the long term.
“That’s what you do when you put money in stocks and shares, it’s a five-years minimum investment.”
Mr Lewis went on to point out that investors should be aware of two important things when they’re investing: and that’s what the prices are when buying and selling.
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“There are only two prices that matter on stocks and shares,” he said.
“The price you buy them for, and the price you sell them for. What happens in the middle is irrelevant.
“So if you don’t have to crystallise anything at the moment – we hope, no-one knows, we don’t have a crystal ball – in a year, or two, or more likely five, over that long term period, we will move back to normal.
“[We hope] things will go back into the normal scenario: if you chose good investments, they’ll be good investments – if you chose bad ones, they’ll be bad ones, and things will return.”
Mr Lewis continued: “Panic selling right now when you don’t need the money… I mean there’s no law it will bounce back – but we’re in a short-term emergency that’s going to hit lots of companies.
“If you invested for the long-term, there’s an argument that says close your eyes, cross your fingers and get on with it.”
This Morning airs weekdays on ITV from 10am.
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