Just under half of retirement investors (49.6 per cent) have rethought their retirement plans or strategy in response to the challenging economic climate, research from AJ Bell has revealed.

AJ Bell’s customer survey 2022 revealed that 50.4 per cent of respondents stated that the challenging economic climate had not changed their retirement plans or that they were too far away from retirement to be affected.

Of those who indicated that their retirement plans had been affected, the most common response was that the cost-of-living crisis had encouraged them to change their investment strategy, identified by 19.1 per cent of survey participants.

This was ahead of causing respondents to withdraw less income in retirement (identified by 10.9 per cent of respondents), partially retire or continue working part-time/fewer hours as a consultant (identified by 10 per cent) and retire later or continue working longer full-time (9.9 per cent).

The remaining 6.9 per cent of those who stated that their retirement has been affected were split between those who were more likely to buy an annuity due to the economic climate (3.6 per cent) and those returning to work having previously retired (3.3 per cent).

AJ Bell head of retirement policy, Tom Selby, commented: “In light of the severity of the cost-of-living crisis and the turbulence we have seen in both markets and the economy, millions of people are being forced to rethink their retirement plans.

“The approaches people are taking will vary depending on their personal circumstances, including how old they are and whether they are saving for retirement or drawing an income.

“The fact half of people are not changing their retirement plans at all should not be viewed as concerning as, in many cases, doing nothing will be the best approach.

“However, it is also important not to stick your head in the sand and keep an eye on your retirement pot, particularly if you are in the early years of taking an income through drawdown.”

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