Almost one in five (18 per cent) of the general population plan to delay their retirement due to the impact of the coronavirus crisis, according to research from Aegon.

A survey from the pension provider found that self-employed workers had been particularly affected, with 40 per cent stating that they had been forced to reassess their plans for retirement.

A further 22 per cent of this subset now planned to put off retirement because of the uncertainty caused by the pandemic.

Just over one in five (21 per cent) of those aged between 18 and 34 expected to delay their age of retirement, while 11 per cent of those aged between 35 and 55 said that they planned to delay retirement.

The firm noted that one in eight (12 per cent) of those aged 55 and over who hadn’t accessed their pension funds prior to the coronavirus crisis have now done so, while a further 8 per cent said they had considered dipping in.

Aegon pensions director, Steven Cameron, said: “The coronavirus crisis is impacting on every aspect of our lives, affecting individuals’ financial situation and for many, their plans for retirement.

"Our research shows that the over 55s and self-employed are set to be hit hardest as many are forced to reconsider plans for the retirement they had hoped for with a significant number now opting to dip into their pension pot earlier than they may have planned.

He added: “For those over age 55, the pension freedoms offer extensive freedom and flexibility in how they access their defined contribution pensions, but this can be a double-edged sword.

"It’s positive that people have the option to use retirement savings intended for later life earlier to reflect their situation. But just because you can access pensions early doesn’t mean you should.”

Cameron explained that “it may be better to consider dipping into other savings first” as taking from pension funds “leaves less of a retirement fund to provide an income throughout what can be decades of retirement” and could result in people paying higher rates of income tax.

He concluded: “It’s always important to think ahead to retirement and plan for the future, and even more so as we face up to the coronavirus crisis.

"We encourage people not to rush into making life changing financial decisions and to first seek financial advice or support from the Government’s Money and Pensions Service."

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