Over a third of 35-44 year olds have altered retirement plans due to Covid-19

More than a third (38 per cent) of people aged between 35 and 44 have updated their retirement plans as a direct result of the Covid-19 pandemic, according to research by Netwealth.

This increases to over half (52 per cent) of this age cohort when also taking into account the individuals who are planning on making changes within the next 12 months.

By comparison, 35 per cent of savers between the ages of 55 and 64 have altered their retirement plans or plan to do so within the next 12 months.

When looking at those aged over 65, just 14 per cent said that they had changed their plans or were planning to do so over the next year.
 
According to Netwealth, the most popular changes made by those aged between 35 and 44 focused on achieving greater security and stability in retirement.

Fifteen per cent of this age cohort had or planned to increase their pension contributions, while 7 per cent had or were considering changing their pension product or provider to receive better value for money.

Additionally, 7 per cent had changed or were considering changing their pension product or provider to one that provides more ESG-focused investments.

Commenting on the findings, Netwealth CEO, Charlotte Ransom, said: “The pandemic has led to increased and often competing financial pressures with many feeling the squeeze more acutely during the latest lockdown.

This, combined with the renewed perspective the virus has given many of us, has led to a significant uptick in people thinking more holistically about their futures. It is encouraging that the concerns highlighted have been met with a proactive response from many looking to take control of their financial futures.
 
“While the Covid-19 pandemic has undoubtedly thrown many people off course with their finances, having a long-term ‘life plan’ is an important tool to help those currently unsure of how they can still achieve key milestones and financial goals over the course of their life.
 
“For those who find it too early to be thinking about needs in later life, particularly given more current pressing financial issues, it is worth remembering the value of planning for the future while there are still many years of employment ahead before retirement.”

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