Maintain Your Retirement Focus

Issue 64

Research has revealed that almost a fifth of people aged 50 or over believe their retirement will be affected by the pandemic.

Of these, a quarter say they have not been able to retire due to their

finances, a fifth have had to use some of their retirement savings whilst

out of work and a tenth have retired sooner than expected due to


Playing catch up

Separate data shows employees in certain industries, who were already

struggling to save into a pension, could be particularly hard-hit and face a

lifetime of ‘playing catch up’ with their retirement savings. More than a quarter

of those working in travel and the arts have not yet started saving into a

pension, while two-thirds of retail workers are concerned they would soon run

out of money if they did retire.

The impact of auto enrolment

It’s not all doom and gloom, however. Thanks to auto-enrolment, more than

10 million people have saved into a workplace pension, and those putting

away the minimum has reached a record high. However, there are signs the

positive impact of auto-enrolment is starting to wane, with almost half of

22 to 29-year-olds still not doing enough to prepare for later life and many

potentially facing retirement poverty.

It’s all about you

It’s never too early or too late to get your retirement plan on track, whatever

stage you’re at and whatever sector of the economy you work in.

If you’re younger, don’t allow any dips in income to impact your pension

contributions if at all possible. Small, frequent contributions throughout your

life add up and make a difference to the quality of your retirement. If you’re

older, you may be considering postponing retirement or if you lose your job,

you might choose to retire earlier than you had originally intended. If you still

have a job but your savings have been impacted, delaying retirement to give

yourself more time to prepare may be an option.

Don’t rush into making life-changing financial decisions

Of course, it all depends on your individual circumstances. The key takeaway

is that for many people, decisions about their retirement, now more than

ever, have been driven by the financial impact of the pandemic, rather than

personal choice. We want you to be able to call the shots, to be in control of

your retirement and to have options. Whatever your circumstances, we’re here

for all your financial planning needs.

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