Covid-19 has changed the way many of us work. Some of us have been furloughed, others have re-joined the stretched work forces to help keep the country running.
Recent research conducted by Legal & General Retail Retirement, has revealed that 1.5 million workers aged over 50 will delay their retirement as a result of the pandemic.
The research revealed that of the over 50s, 15% would delay retirement by an average of three years, whilst 10% admitted they could delay their plans for five years or more. Over a quarter of those people spoken to (26%) would continue to work indefinitely.
This research also highlights the need for some people to work longer as a result of being furloughed or seeing a decrease in income as a result of the corona virus.
Chris Knight, CEO of Legal & General Retail Retirement said:
“The financial impact of the Covid-19 pandemic seems to be particularly pronounced for people aged over 50 who are still in work. While some people will choose to work for longer, or indefinitely, the key consideration when it comes to this research is that it seems this decision has been driven by the financial impact of the pandemic, rather than personal choice. We know this is a key stage in people’s retirement planning so seeing a material impact on your household income will naturally lead to pessimism about achieving your retirement goals. While it would be naïve to say that these financial issues will not have an impact on people’s ability to retire, it’s important for people to have a strong understanding of the options available to them before concluding that their retirement needs to be delayed or forgotten indefinitely.”
Planning for retirement is key, especially if the consideration at the moment is to continue working.
Below are Legal & General Retail Retirement’s top tips for managing retirement planning in the pandemic:
- Develop a strong understanding of your total savings: Those who feel like they might be forced to delay their retirement should make sure they’ve gone through the process of getting a comprehensive understanding of their total savings. Many people may have more saved than they anticipate in the form of forgotten pots from previous employment. Using a pot-tracing service to understand your total savings will help you plan better.
- Consider the role that different types of products might play: In addition to pension savings, it’s also worth looking at a broad range of retirement products to get a holistic understanding of what you can utilise to fund your retirement. Equity release, for instance, can be a useful tool for people who have significant property wealth that they might benefit from taking advantage of.
- Check on what you’re entitled to: There are lots of things being put in place to help people who have financially been impacted by the pandemic. Examine what your entitlements are and make sure you are receiving any relevant benefits, particularly if you have lost your job. Also, many people might want to consider looking at measures their bank has put in place to cover any recent hardship by offering short-term solutions to things such as mortgage payments.
