The coronavirus pandemic has taken its toll on many areas of our lives. A recent study by insurance agency British Seniors found that 22% of Brits have delayed their retirement plans as a result.
We take a look at how coronavirus has impacted retirement plans for the over 50s in Britain and what this could mean for the future.
Has coronavirus delayed retirement plans?
The simple answer is yes. British Seniors’ latest State of Retirement Report found that 77% of those approaching retirement felt that the coronavirus pandemic would impact their ability to retire. On average, they expect it to delay retirement plans by around two and a half years.
In fact, in the study of over 1,500 people aged over 50, coronavirus was highlighted as the biggest threat to retirement plans. This was ahead of higher living costs, lack of pension growth and poor savings rates.
The most significant figure is that more than a fifth of Brits have already delayed their retirement plans as a result of the pandemic. And 38% feel they would struggle financially in retirement.
How do you plan for retirement?
As with anything to do with personal finances, it helps to have the information to hand. So a useful exercise when making retirement plans is to make a budget of what you think you’ll need to live on when you retire.
The Money Advice Service has a pension calculator that you can use. Here you can work out your State Pension age and State Income amount. You can also choose your retirement age and calculate the target income you’d like in retirement.
When it comes to pensions, it also helps if you know what pension pots you have. Factor in any other sources of income you may have to rely on in old age. Once all this information is combined, it will be possible to see whether there are any shortfalls.
If for any reason you haven’t got a workplace pension, say you are self-employed, then it is possible to set up a pension yourself. Providers such as Nutmeg and WealthSimple include pensions as part of their investment solutions and offer fully managed portfolios.
What can you do if coronavirus has impacted your retirement?
If you are making retirement plans and coronavirus has impacted your finances, you may not know which way to turn.
One option is to check in with your pension providers. This way you may be able to talk to someone about what your plans are. You’ll also be able to discuss whether there are any changes that can be made to improve your circumstances.
Alternatively, you could use an independent financial adviser. A qualified and impartial professional will be able to take a look at your finances and suggest options. Sites like Unbiased can help to connect you with advisers in your local area. Just be aware that these types of advisers do typically charge a fee for their services.
If you just want some free and confidential advice, then The Pensions Advisory Service or Pension Wise are also good resources.
