How will the pandemic affect YOUR retirement plans?

How will the pandemic affect YOUR money? One in five feel less confident and middle-aged face the most pressure before retirement



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More than half of adults have changed their retirement plans after the pandemic, mostly for the worse, though some have gotten better, new research shows.

Overall, one in five feels more insecure about their future finances, while only one in ten saves harder and is more positive about their retirement.

According to Aviva’s research, people aged 35-44 are most likely to have seen their retirement plans fail. A quarter feel less confident and one in six is ​​considering working longer.

Pandemic impact on finances: Middle-aged people are under the most pressure ahead of retirement

Pandemic impact on finances: Middle-aged people are under the most pressure ahead of retirement

In this age group, only 10 percent have saved more and 8 percent say they may retire earlier due to the pandemic.

People over 55 are the most likely to say that the crisis has not affected their retirement plans.

>>>How do you arrange your pension if you notice that it is falling short? Find out below

Source: Aviva

Source: Aviva

Source: Aviva

The Aviva study also found:

– People are evenly split on how much control they have over their priorities after the pandemic, with 41 percent saying they have more now and the same percentage thinking they have less than before

– Two in five adults say Covid-19 has encouraged them to build more long-term savings

STEVE WEBB ANSWER YOUR RETIREMENT QUESTIONS

– About 53 percent postponed or canceled a major event or ambition during the pandemic – of these, 16 percent postponed starting a new job, 13 percent postponed buying a new home, 12 percent reconsidered starting a business, 10 percent waited longer to have a baby and 10 percent postponed getting married.

Aviva surveyed 2,000 adults in a nationally representative survey conducted in October.

Alistair McQueen, head of savings and retirement at Aviva, said: “For many of us, the pandemic has profoundly affected our outlook and prompted us to rethink our priorities.

“The experience of a global health crisis has caused many people to suspend plans and consider the broader implications around important issues such as retirement plans.”

Meanwhile, a separate study by Hargreaves Lansdown found that a third of people aged 45 to 54 have no plans to get their finances in order in their final years of work before retiring.

Of the rest in this age group, 41 percent planned to continue in their current jobs full-time, 10 percent said they would go part-time, and 5 percent planned to retire completely.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves, who surveyed 1,000 people in September, says: ‘These findings point to a worrying lack of planning among those closest to retirement about how they plan their remaining working years. to spend.

“The pandemic may have played a part in this, with the economic upheaval potentially wreaking havoc on people’s retirement planning, with many older workers taking early retirement after being laid off.

“There’s also a chance that the volatility of the investment market that we saw earlier during the pandemic has impacted people’s pensions, causing them to postpone their retirement plans a little longer.”

How to get your pension on track

If you’re worried about your retirement and having enough, read a full 10-step guide to solving it here.

First, research your existing pensions. Broadly speaking, you should ask schemes for the following:

– The current fund value

– The current transfer value – because there may be a penalty to move

– Whether the pension is part of a final salary or defined contribution scheme

– If there are guarantees – for example a guaranteed annuity – and if you would lose them if you moved the fund

– The pension prognosis at retirement age.

You can use a retirement calculator to see if you have enough – find This is Money’s here.

You need to add the forecast figures to what you expect to receive in state pension, which is currently £179.60 a week or about £9,300 a year if you qualify for the full new rate.

Get an AOW forecast here.

If you’re tempted to merge your old pensions, here are some tips to help you decide.

If you’ve lost track of old pensions, the government’s free tracking service is: here.

Be careful when you search for the Retirement Discovery Service online, as many companies that use similar names will appear in the results.

These also offer to seek your retirement, but try to charge or flog you for other services, and can be fraudulent.

If you’re in your twenties, we’ve got a special retirement guide here. Self-employed people can find out how to arrange their pension here.

Women, who often miss out because they receive lower wages and do unpaid care work, can find out here how they can increase their pension.

TOP SIPPS FOR DIY PENSION INVESTORS

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