COVID-19 jeopardises retirement plans of millions

A new survey among over 920 UK adults aged over 40 has revealed how the coronavirus pandemic impacted their retirement plans:

  • 13% of people aged between 40 and 67 have been forced to delay their retirement as a result of the pandemic
  • Meanwhile, 9% have either chosen or been forced into early retirement 
  • Over two fifths (42%) admit to lacking a clear retirement strategy

The coronavirus pandemic has jeopardised the retirement plans of millions of UK adults, new research from My Pension Expert has revealed. 

The retirement finance adviser commissioned an independent survey among over 2,000 UK adults, of which 929 were aged over 40. The research found that of those aged 40 to 67, 13% have had to delay their retirement as a result of the financial ramifications of COVID-19; a similar number (12%) admit to decreasing the amount they contribute to their pension since the beginning of 2020.

Meanwhile, one in ten (9%) Britons aged over 40 have either chosen or been forced into early retirement as a result of the pandemic. 

My Pension Expert’s study also showed that over two fifths (42%) of those aged between 40 and 67 have no clear retirement plan in place, with 47% admitting to finding researching retirement finance options complicated. 

The vast majority (72%) of over-40s have never sought financial advice for their pension. Almost half (48%) trust their employer to manage their pension plan, while 24% believe consulting a financial advisor would be too expensive. Consequently, 6% of those over 40 have already withdrawn money from their pension without seeking financial advice. 

Andrew Megson, executive chairman of My Pension Expert, said:

“The coronavirus pandemic has upended many people’s financial plans. However, it is particularly concerning that so many over-40s have either been forced to delay retirement or accept it at short notice. 

“The research demonstrates that a massive 42% of over-40s do not have a clear retirement plan in place – now is the time to address this. In the face of the economic disruption caused by COVID-19, people approaching retirement age should have a clear strategy in place for how they will save and eventually spend their pension pot.

“Consulting with an independent financial advisor is an important first step. People may think that doing so is prohibitively expensive, but this is far from the case. And ultimately, taking on expert advice could significantly improve an individual retirement finances, so the question is really whether people can afford not to seek help?”

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