Majority of UK adults say pandemic has impacted retirement plans

54% of UK adults say the impact of the Covid-19 pandemic has affected their plans to retire, according to new research from Aviva.

Related topics:  Later Life   |   Rozi Jones
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24th November 2021
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"For many of us, the pandemic has had a profound impact on our outlook and caused us to look again at our priorities."

Nearly one in five (18%) feel less secure about their financial future, peaking at more than one in four (27%) aged 35-44.

Across the generations, the 35-44 age group are the most likely (68%) to have felt some impact on their retirement plans from the pandemic. This has been positive for some, including one in ten who used lockdown to save more for their retirement.

But almost one in six people (14%) aged 35-44 antipate their retirement date may be pushed back, while 16% have lost confidence in their ability to live comfortably once they have retired.

The research also reveals a nation polarised when it comes to deciding its own destiny. While 41% say the pandemic has made them feel they can take more control of their priorities, the same proportion (41%) say they have less control than they did before.

When it comes to their finances, more than two in five UK adults (41%) say life during Covid-19 has encouraged them to build more long-term savings. People aged 35-44 are most likely to feel compelled to save more for their futures (54%), followed by 51% of those aged 25-34.

Aviva’s findings also show more than half (53%) of UK adults have suspended or cancelled a planned life event during the pandemic.

Among those affected, almost one in six (16%) have held back from starting a new job; 13% have postponed buying a new house; 12% have thought twice about starting a new business; one in ten (10%) have pressed pause on trying for a baby; and the same (10%) have postponed getting married.

Alistair McQueen, head of savings and retirement at Aviva, commented: “For many of us, the pandemic has had a profound impact on our outlook and caused us to look again at our priorities. The experience of a global health crisis has led many people to put plans on hold and consider the wider implications around significant 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.

“As we all juggle personal priorities against a backdrop of uncertainty, it’s important to look for steps that can help us take control of our circumstances as best we can."

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