Experts have warned that the coronavirus pandemic has ruined pension pots, although more people are choosing to work longer due to the rise in flexible working.
A YouGov poll of 2,114 UK adults - conducted for Smart - found that of the over 55’s who planned to retire in the future, 13 per cent had decided to delay their plans as a result of the coronavirus pandemic.
The poll also highlighted financial concerns among older employees planning to retire, with 52 per cent of all UK adults saying that they were concerned about only being able to afford a limited lifestyle in retirement.
Now planning to retire later than they had previously intended, were 8 per cent of employees - particularly those with a pension fund that has fallen in value and those working from home.
Of those mainly from richer households - and those on furlough - 5 per cent are planning to retire earlier than they had previously intended.
Stuart Lewis - founder of Rest Less - commented that the over 50’s had been disproportionately affected by the pandemic.
He said:
“Retirement incomes have been decimated, age discrimination is rife and the job prospects for the over 50s are particularly difficult in the current climate.”
He added that many clients who are employed and happy in their jobs are choosing to continue working to top up their pension pots while they still can and that the over 50s were more likely to be made redundant and find themselves ‘at the back of a very long queue’ for work opportunities.
He stated:
“Some are being forced into an early retirement they cannot afford, while others are turning to retraining or setting up on their own to make ends meet.”
“We would like to see the government offer similar tailored initiatives to support the over 50s back into the workplace as well as financial incentives to businesses to encourage them to hire older workers who bring with them a wealth of life experience and wisdom, which is essential to business productivity and growth."
Emily Andrews - Senior Evidence Manager at the Centre for Ageing Better - is of the opinion that the financial impact of the pandemic has hit some groups of savers particularly hard - which could have knock-on effects on retirement plans.
She added that the decision to retire was ‘very personal’, stating:
“There are positive and negative factors driving these decisions. For some, the mass experiment in flexible working brought about by the pandemic has made working for longer a more appealing prospect.
Our own research with the Institute for Fiscal Studies showed that older workers currently working from home were more likely to say they were now planning to retire later.”
