More than a quarter of over-55s fear Covid-19's impact on pension savings

Over a quarter (27 per cent) of over-55s approaching retirement said the Covid-19 pandemic’s impact on their pension was their biggest financial worry, according to research from Standard Life.

The research also found that, despite this level of concern, just 7 per cent of the age group said they were willing to seek professional financial advice on their attitude to risk as a result of coronavirus, with two-thirds (65 per cent) stating they no intentions to seek any financial advice in relation to the impact of Covid-19 on their retirement plans.

Men were more likely than women to be happy about seeking advice, with 9 per cent happy to talk to a professional compared to just 5 per cent of female respondents.

Standard Life retirement advice planning specialist, John Tait, said: “Some people may feel that financial advice isn’t for them, or see it as something complicated or excessively expensive – neither of which has to be the case.

“Speaking to a professional adviser can help you understand the actual impact of the pandemic on your retirement plans. What you hoped and planned to do may still be possible.”

Additionally, just over a third (34 per cent) of over-55s said the Covid-19 pandemic has made them more cautious with their savings and investments.

More than a quarter (28 per cent) of over-55s surveyed listed losing value off their savings and investments as a result of Covid-19 as their biggest financial concern, with a third (33 per cent) of male respondents agreeing with this compared to under a quarter (23 per cent) of female respondents.

Consequently, only 5 per cent said they were now more likely to take risks with their savings and investments than they were pre-pandemic.

Tait continued: “Volatile markets are always a concern when it comes to the impact on savings, investments and pensions, and often more so for those nearing retirement who are more wary of the money they’ve worked so hard to save. However, investing by its nature has its ups and downs, and while global markets have seen big drops this year, they’ve since recovered significant value.

“Thankfully, there are ways to manage the risk of investments while still making your money work hard. Investing is for the medium to long term and can give your money more opportunity to grow in value than leaving it in a cash account. Plus, spreading any money across different types of investments and geographies means that the value is less likely to change dramatically than if you invest everything in one place.”

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