11% of employees can no longer afford to retire

More than one in 10 (11%) people have had to delay their retirement because they can no longer afford to retire, according to new findings.

The research from Wealth at Work, which was carried out by Vital Research among 1,320 UK adults aged over 50 in employment, uncovered the varying impact of the Covid-19 (Coronavirus) pandemic on retirement plans. It highlighted that some employees have to work longer due to affordability as a result of their savings taking a hit due to reduced household income or a fall in the value of their pensions and investments.

More than a fifth (22%) of those approaching retirement said it has made them want to stop working earlier and as soon as they can. Conversely, 13% want to delay it because they have realised they enjoy working.

According to Jonathan Watts-Lay, director at Wealth At Work, the findings revealed that the pandemic has “clearly” affected people’s retirement plans in different ways. For some, it has given them a new perspective on life and made them look forward to retiring, while others have discovered they are happy at work and aren’t yet ready to give it up.

He explained that while uncertainty can make retirement planning very challenging, what is certain is the more workers plan for retirement and review their plans as their circumstances change, the more likely that they will be able to deal with all eventualities.

“This could be realising that you can’t yet afford to retire so have to work for longer, or even that retirement is more affordable than you thought. Many organisations recognise that their employees will need help with their retirement planning, especially through this difficult period and are putting support in place. It is worth speaking to your employer to find out what help is available,” he said.