Over half of retirement plans changed by pandemic

Over half (54%) of UK adults have had their plans to retire affected by the Coronavirus pandemic, according to new research. Those aged 35-44 were most likely (68%) to have had their retirement plans affected. Almost one in six in this after group (14%) said their retirement date may be pushed back, with 16% having lost confidence in their ability to live comfortably once they have retired. Over 55s were the least likely to have had their retirement plans affected, according to the survey from Aviva, with 62% saying the pandemic has had no impact on their retirement plans. Nearly one in five across all age groups (18%) said they feel less secure about their financial future, peaking at over a quarter (27%) between the age of 35 and 44. However, others felt the Coronavirus pandemic had encouraged them to better their finances. A total of 10% of those surveyed felt more secure about their financial future than before the pandemic, with the same number being able to save more for their retirement during lockdown. Over two in five (41%) said the pandemic has encouraged them to build more long-term savings. Those aged 35 to 44 were most likely to feel compelled to save more for their futures (54%), followed by 51% of those aged 25-34. Almost two thirds (59%) of those surveyed said the pandemic has made them question what is important in life, while half said it has changed their priorities. Alistair McQueen, head of savings & retirement at Aviva, said: “For many of us, the pandemic has had a profound impact on our outlook and caused us to look again at our priorities. The experience of a global health crisis has led many people to put plans on hold and consider the wider implications around significant issues like retirement plans. “The experience of having decisions taken out of our hands through successive lockdowns has left many people longing for a sense of control. But much as it’s encouraging to see people striving to build more long-term savings, our findings show anxiety about the future is still weighing heavily on their minds.” Over half (53%) of those surveyed has suspended or cancelled a planned life event during the pandemic. This included starting a new job (16%), buying a new house (13%), starting a new business (12%), trying for a baby (10%) and getting married (10%). Almost two thirds (59%) said they felt less comfortable about coping with unforeseen events than they did before the pandemic. This included over three in five (62%) of those aged 44-54 and the majority (70%) of over 55s. Aviva surveyed 2,000 UK adults in October.

Over half of retirement plans changed by pandemic

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