The number of workers delaying retirement due to the pandemic has increased by 26 per cent in less than a year, according to new research.
Asset management group Fidelity International found that 23 per cent of workers made changes to their retirement plans as a result of Covid-19 in 2020 and less than 12 months on, this has increased to 29 per cent for all workers, and to 33 per cent of those aged over 55.
The findings showed that workers are delaying their retirement by an average of two and a half years.
The number of workers delaying retirement due to the pandemic has increased by 26 per cent in less than a year, according to new research
Nearly a third (30 per cent) said they were delaying retirement to save more towards their pensions, while 18 per cent were making up for lost savings caused by the pandemic.
Another reason included needing to support adult children or other family members financially (23 per cent).
When it came to planning their retirement, 21 per cent of workers revealed plans to ‘phase into’ it rather than just stopping work on a set date.
Last October, 61 per cent of workers planning on delaying their retirement were confident that they would be able to find or maintain a job – this has now dropped to just 50 per cent.
What’s more, 32 per cent don’t think they will have enough money to enjoy the retirement they would like.
Off the back of the research – which comes ahead of Pension Awareness Day on 15 September – Fidelity is urging consumers to re-evaluate their retirement needs in light of the pandemic.
Thirty per cent said they were delaying retirement to save more towards their pensions, while 18 per cent were making up for lost savings caused by the pandemic
Commenting on the findings, Maike Currie, investment director at Fidelity International, said: ‘For many, the effects of the pandemic are far from over.
‘Despite Government interventions such as furlough and business support schemes helping to prop up households financially, people are still concerned over a future that has become increasingly blurry following the events of the past two years.
‘Many are choosing to put more safety measures in place, whether by re-evaluating their pensions, working longer, or changing their expectations for retirement.
‘In essence, workers are battening down the hatches to protect themselves against what may come next.’
To help those thinking about retirement understand the amount they will need to afford their desired lifestyle, Fidelity has created a calculator which covers the basic cost of living as well as additional outgoings such as holidays or home improvements.
Once they have determined this amount, the MyPlan tool provides guidance on how much they would need to save or potentially invest over a number of years to achieve this goal.
This post first appeared on Dailymail.co.uk