Retirement focus – more important now than ever (whatever your age)

Please be aware the below blog is older than 12 months, therefore the information may not be relevant or up to date.

Have your retirement plans been derailed in the past few months?

If they have, you’re certainly not alone, as huge swathes of people have unfortunately suffered the same affliction; in fact, nearly one fifth of those aged 50 or over, believe their retirement will be negatively impacted by the pandemic. Of these, a quarter have not been able to retire due to their finances, a fifth have had to dip into their retirement savings whilst not working and a tenth have retired sooner than expected because of redundancy¹¹.

Hard-hit sectors

Employees in certain industries, already finding it challenging to save into a pension, could be especially hard-hit and face a lifetime of playing catch up with their retirement savings¹². Over a quarter of those working in the arts and travel industries have not even started saving into a pension, while two-thirds of retail workers are worried they would quickly run out of money if they did retire.

Not all bad news

Thanks to auto enrolment, over ten million people have saved into a workplace pension, but there are signs the positive Retirement focus – more important now than ever (whatever your age) impact is receding, with nearly half of those aged 22 to 29 still not doing enough to prepare for later life, with many facing retirement poverty. Whatever stage you’re at and whatever sector of the economy you work in, it’s never too early or too late to get your retirement plan on track.

Young and old – strategise

If you’re younger, don’t let any falls in income impact your pension contributions if possible. Small, regular contributions throughout your life can build up and make a difference to the quality of your retirement. If you’re older, it’s possible you’re thinking about postponing retirement or if you lose your job, you might choose to retire earlier than intended. If you still have a job but your savings have been impacted, an option may be to delay retirement to give yourself more time to prepare.

Take control

For many people, decisions about their retirement have been driven by the financial impact of the pandemic, rather than personal choice. Don’t rush into making life-changing financial decisions; we want you to be in control of your retirement and to have options. Whatever your personal circumstances, we’re here for all your financial planning needs.

by Daren Wallbank, Chartered Financial Planner

11 Co-op, 2020,
12 Scottish Widows, 2020