54% of employees’ retirement plans hit by Covid

EXCLUSIVE: 68% say uncertainty on pension decision-making is their key retirement concernNew data has revealed that more than half (54%) of UK working adults said that the impact of the Covid-19 (Coronavirus) pandemic has affected their plans to retire.

According to research carried out by insurance provider Aviva, nearly one in five (18%) respondents feel less secure about their financial future, peaking at more than one in four (27%) for those aged 35-44. Two-thirds (68%) of this age group felt some impact on their retirement plans from the pandemic, while one in 10 saved more for it during lockdown.

Furthermore, almost one in six (14%) in the same age group anticipate their retirement date to be pushed back, while 16% are not confident that they will be able to live comfortably once they have retired.

Nearly three in five (59%) employees believe the pandemic has made them question what is important in life, while half have said it has changed their priorities. Four in 10 (41%) found that the pandemic has made them feel they can take more control of their priorities, whereas the same number think they have less control than they did previously.

More than two in five (41%) cited life during Coronavirus for encouraging them to build more long-term savings, with 54% of those aged 35-44 feeling compelled to save more for their futures, followed by 51% aged 25-34.

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Alistair McQueen, head of savings and retirement at Aviva, commented that the pandemic has had a profound impact on many people’s outlook and caused them to rethink their priorities, with some putting plans on hold and considering the wider implications around issues like retirement plans.

“The experience of having decisions taken out of our hands through successive lockdowns has left many people longing for a sense of control. But much as it’s encouraging to see people striving to build more long-term savings, our findings show anxiety about the future is still weighing heavily on their minds,” he said.