One in four workers alter pension contribution plans amid Covid-19

One in four workers have increased or decreased payments into their pensions due to the ongoing Covid-19 pandemic, according to research by Money.co.uk.

It found that "savvy workers" in the financial sector were most likely to have increased their pension contributions, with 25 per cent taking steps to increase the amount they paid in.

Meanwhile, those working in the arts and culture sector were found to be the most likely to have decreased their contributions amid the pandemic, with 32 per cent doing so.

The analysis also revealed that over two million savers don’t expect to ever be able to afford to retire, whilst 3.5 million workers felt that they would be working until they were at least 71, “long after” 2020’s retirement age of 65 and the 2026 retirement age of 67.

These concerns were most prominent in Brighton, where the number of workers concerned that they will never afford to retire increased to 1 in 10, and the number of people expecting to work above the age of 71 increased to 1 in 5.

The analysis also found that 80 per cent of respondents were not relying on the state pension and had taken out a personal pension to be able to afford to live once they stopped working.

However, just under half (40 per cent) of workers stated that they did not understand how to go about obtaining their pension, despite holding one.

Commenting on the findings, Money.co.uk personal finance expert, Salman Haqqi, said: “The thought of having to work everyday for the rest of your life is a pretty bleak one, but it is the reality facing many workers across the country as the financial aftermath of coronavirus undoubtably impacts our future retirement plans.

“Despite millions being eligible for a state pension, and despite paying for it through national insurance contributions, the majority of us are not relying on it.

“Planning ahead, understanding your pension options and saving as much as you can afford to budget for, really is the only way to ensure you future proof your finances.”

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