Pension saving is an important end goal for many people as they progress closer towards their eventual retirement and departing from the workforce. However, undoubtedly, saving towards retirement is just one of the many factors of life which have been impacted by the COVID-19 pandemic. Putting money aside for later in life is unfortunately one of the areas where over 50s in particular have been hardest hit.
Research from SunLife has shown that while over half of working people over 50 have a private pension, one in 20 have been forced to stop their contributions or cut the amount they are paying in due to financial strains.
The cost of the pandemic for Britons should not be underestimated, and in fact, a number of people over 50 have recorded a significant drop in their finances over the last 11 months.
Out of those asked, on average, over 50s stated they are worse off by £445 per month – a sum which could make a substantial difference.
Among working over 50s, almost half of those asked said they have seen their job and income impacted, with 12 percent affected by unemployment.
For over 50s who have lost their jobs, money expert Jasmine Birtles provided further advice.
Ms Birtles urged Britons to first get their finances in order, managing their money, and making a claim for Universal Credit should they so need it.
Next, people should consider whether they wish to reenter the workforce, or create their own job, perhaps out of a hobby or interest they’ve previously held.
Updating a CV and networking with others in the field can also be suitable steps to take to get oneself back out there in terms of employment.
He said: “The pandemic has been tough, financially, for so many.
“Our research shows that for older people who were either self-employed or working in one of those ‘at risk’ industries like retail, hospitality, or entertainment at the start of the pandemic, it has been particularly hard.”
Of course, money management will be key if a person has been impacted by the COVID-19 pandemic.
The Money Advice Service has recommended all Britons clearly set out a budget which outlines income and expenditure.
This will help people to understand where they might be spending more money than necessary, or costs they could cut out altogether.
People are also encouraged to put away money with a Financial Service Compensation Scheme (FSCS) accredited bank.
This will protect funds up to £85,000 should the worst happen, and will ensure Britons can still have access to their money.
Finally, shopping around for the best interest rates is always key, particularly in the current climate.
While many banks may not be offering the type of interest Britons are hoping for, rates can be increased by locking money away, and some banks are offering a sum for customers who switch to them.
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