Guide to the effects of COVID-19 on retirement planning

WHAT DOES THE PANDEMIC MEAN FOR YOUR RETIREMENT PLANS?

In our Guide to the Effects of COVID-19 on Retirement Planning, as the coronavirus pandemic continues to dominate world headlines, we consider how this may affect individuals’ financial plans for retirement.


A significant number of people aged over 50 and in work are potentially considering delaying retirement (15%) by an average of three years, or will continue working indefinitely on a full or part-time basis (26%), as a direct result of the COVID-19 pandemic, according to new research[1].



Change to retirement plans

Data from the Office for National Statistics currently shows the number of workers aged above 65 years is at a record high of 1.42 million[2]. However, if people change their retirement plans in response to the pandemic, this could increase considerably. While, on average, those who plan to delay their retirement expect to spend an additional three years in work, 10% admit they could delay their plans by five years or more.