New report highlights the significant impact of Coronavirus on the retirement landscape
• 22% of those approaching retirement have delayed their plans due to Covid-19
• 77% of over 50s believe Covid-19 will impact their ability to retire
• 17% of over 50s have been forced to utilise retirement savings throughout the pandemic
More than a fifth (22%) of those approaching retirement age have been forced to delay their plans due to Covid-19, according to a new report from British Seniors.
Released today by the over 50s insurance specialist, the State of Retirement Report found that Covid-19 was considered Brit’s biggest threat to retirement, with more than three quarters (77%) of those aged 50+ believing it will directly impact their ability to retire.
Covering a wide range of issues and disparities in the retirement landscape, the British Seniors report highlights the widespread impact that both Coronavirus and longer-term economic challenges have had on the next generation of retirees.
The report revealed that nearly one in five (17%) of over 50s have needed to dip into their retirement savings early due to the on-going impact of the pandemic, resulting in more than a third (38%) believing they will struggle financially in retirement.
As such, just under half (48%) of those surveyed in the report felt they would be able to retire by the age they had planned, with Covid-19 delaying retirement by an average of two and a half years.
The report found the impact of the pandemic has compounded several long-term barriers to retirement, specifically the challenge faced by over 50s in balancing high living costs with saving for their future. Among the over 50s surveyed in the report, over a third (34%) had less than £50,000 in pensions savings, with the same amount (34%) also carrying some level of non-mortgage related debt.
Biggest threats to retirement among over 50s
Rank Retirement Threat %
1 The impact of Coronavirus 57%
2 High living costs 35%
3 Not being able to save 32%
4 Lack of pension growth 27%
5 Poor savings rates 25%
6 High cost of care 9%
7 Lack of job security 8%
8 Needing to support family 6%
9 High property costs 4%
While the majority of those impacted by Covid-19 are delaying their plans, some have been forced into an early retirement by the pandemic. According to the study, 8% had been made to retire before they had planned due to Coronavirus, citing health concerns (28%) and difficulties in finding employment after losing their jobs (16%).
David Rees, Chief Operating Officer of British Seniors commented; “The Coronavirus pandemic has taken a toll across the UK and sadly we will likely continue to feel its effects for years to come.
“While families everywhere are feeling the impact of the pandemic, our report found that those approaching retirement have been hit hard, and for some the retirement dream is increasingly falling out of reach.
“Everyone should have the right to a comfortable retirement. We hope that the findings in our extensive report help highlight the issues and barriers being faced by those approaching retirement, many of whom may struggle in being able to retire as planned.
David Rees added: “For those approaching retirement, it’s vital to begin planning early. Just 16% of over 50s in our report have taken proactive steps towards retirement planning, and as we enter a new world post-Covid-19, taking early steps will be more important than ever in securing your retirement dream. Though it may be tempting to put it off for another day, by getting ahead of the issue, seeking professional advice and ensuring you have the right products in place, you can be confident of peace of mind in your golden years.”
The full British Seniors State of Retirement 2021 Report, which features an extensive analysis across all aspects of retirement including gender issues, regional disparities, pensions and savings pots, and the impact of Covid-19 on the retirement landscape is available on the British Seniors website.
*Study of 1,513 Brits who were aged over 50+ and had plans to retire conducted by Censuswide on behalf of British Seniors Insurance Agency between 01.12.2020 – 04.12.2020, as part of the British Seniors State of Retirement 2021 Report. Additional stats available on request. Any discrepancies are due to rounding.
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