Covid Delays Retirement Plans for 1.45m over 50s

New research from Legal & General has found that Covid-19 has force 1.45 million over 50s in the UK to delay retirement.

The research found:

• 41% that’s 2 out of 5 people aged over 50 not already retired have had impact on their career and retirement plans due to Covid-19.
• 9% that’s 1 in 10 or 1.3 million people seem to benefitted and plan to retire an average of 2 years earlier than originally planned.
• 10% i.e. 1.45 million people are expected to delay retirement for an average of 3 years due to setbacks caused by the pandemic.
• 20%, that's 2.6 million pre-retirees will need to continue working indefinitely due to the pandemic.

According to the Office for National Statistics (ONS) People aged 50-64 were hit the hardest as unemployment in April 2020 was 2.6% rose to 4.1% in December 2020.

Legal & General’s data found in the UK there are 429,000 of over 50’s unemployed, that is 25% or 1 in 4 of all unemployed people.

Due to Covid-19, a third of the over 50’s in work (34%) have seen their household income reduce by pproximately 20% of a family’s average monthly spend of £2,537 which is more than the average amount needed to cover all monthly bills after mortgage or rents have been paid (a reduction of £400pm).

Reduced household finances have also led to people reducing their retirement savings.

• 68% or 3 out of 5 workers over 50 have had a direct impact on their retirement savings due to the pandemic with 13% saving less for retirement which reduces savings by an average of £230 a month.

Comment

Virtually everyone has suffered in some way.  2020 was basically a year lost for all, be that retirement, savings, career, family contact or education.  The news is all about students being a year or so behind but equally those close to retirement will be a year down too.  At least we are still here.  There are plenty of people, sadly no longer with us, who would rather be here and a year behind.