Almost a fifth of over-50's retirement plans impacted by Covid-19

Almost a fifth (18 per cent) of those over 50 say that the Covid-19 pandemic has already or will impact their retirement plans, according to research by Co-op insurance.

The firm found that of this subset, 25 per cent stated they have not been able to retire due to their finances.

A further fifth had been forced to use some of their retirement savings as a result of being out of work during the pandemic, whilst 10 per cent have retired earlier than planned after being made redundant during the pandemic.

The survey also revealed that the pandemic and subsequent lockdown had encouraged almost a third (31 per cent) of those aged 50 and over to retire sooner.

This echoes recent analysis by Aviva, which suggested that the pandemic had driven an increase in the number of people retiring early during the lockdown, after ONS figures revealed the largest four month rise in early retirement since 2010.

According to the Co-op, of those aged over 50 who have already retired, 23 per cent stated that the pandemic has in turn affected plans to spend time with friends and family, and a fifth have not been able to travel in retirement as hoped.

The pandemic has also bought a shift in attitudes amongst retirees, with almost half (49 per cent) stating that they have realised how important friends and family are, and over a quarter (27 per cent) keen to make up for lost time.

Commenting on the findings, Co-op head of life insurance, Graham Ward Lush, stated: “It’s perhaps no surprise that so many people over the age of 50 are disappointed with how the pandemic has affected their retirement plans, with so many (43 per cent) envisaging more of this time being spent with friends and family.

“It’s encouraging to hear though that despite this situation being frustrating and disappointing for so many, the majority of people are now planning to make up for lost time.”

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