Pension plans disrupted for many Britons – is your retirement affected?

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Pension planning is often undertaken years before a person actually leaves the workforce, but the approach could change in the future. The financial impact of the pandemic has clearly had a bearing on how people approach the issue going forward. Research undertaken by Moneyfarm, a digital wealth manager, has shown the changing needs of Britons amid lockdown.

This rose to a fifth of individuals asked between the ages of 45 and 54 in a surprising blow for pension savers.

The survey asked 2,000 adults in the UK about their attitudes towards retirement and plans for the future.

Meanwhile, early retirement also seems to be an option that could be off the cards for working-age Britons.

Just eight percent of those over the age of 55 say that COVID-19 has made them more likely to set retiring early as a financial goal.

This is compared to one in four 18 to 34-year-olds who were asked, showing a wide gap in attitudes to retirement dependent on age.

While plans for retirement can often change, it is important to plan ahead.

This can often be an endeavour that takes place decades in advance to ensure enough is put aside.

However, it is important to recognise that it is never too late to save for a pension and that an arrangement can be entered even shortly before a person retires.

Generally, people are advised to start with a workplace arrangement, and auto-enrolment – which requires employers to automatically enrol all eligible employees onto a pension scheme – can help towards this goal.

Throughout a person’s working life, they are encouraged to monitor their pension investments.

This action ensures savings are on track to meet regular goals and allows people to take further action.

The Money Advice Service has said Britons should be thinking about their retirement 10 years away from the actual event.

Although it may seem a while off, reviewing pension investments can be a sensible decision as it allows savers to account for any potential shortfalls.

In addition, any debts a person still has should begin to be paid off, in order for Britons to be debt-free at the point of retirement.

Five years out of retirement, there are some pressing points to consider.

Tracking down lost pension pots, as well as taking the opportunity to review investments once again can help provide a clearer picture of retirement.

And indeed, securing a state pension statement can also be a good idea, as it can help people to understand their entitlement from the government.

Finally, before making any major pension decisions, Britons are encouraged to consult a financial adviser.

These individuals are likely to be able to shed more light on a person’s individual circumstances and thus assist them in composing an arrangement that suits their needs.



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