Pension plans have had to be rearranged and delayed in recent months as Rishi Sunak’s furlough plans ended up having long-term ramifications. New research from Fidelity has revealed many workers have had to “press pause” on their retirement plans.
In a survey of over 3,000 UK adults which was combined and assessed with data from HMRC, it was found that 38 percent of people who were or are furloughed have made changes to their retirement plans as a result of the continued pandemic.
This could, when extrapolated to the UK at large, affect over 3.6million workers.
According to Fidelity’s analysis, 32 percent of these workers intend to “phase into” retirement instead of retiring on a set date.
Additionally, 19 percent remained unsure of any of their options for their retirement and six percent have delayed their retirement completely.
Maike Currie, an investment director at Fidelity International, commented on these findings: “Worries about saving enough for retirement were present long before the pandemic, but the events of 2020 which have continued into the new year, have catapulted people’s pension concerns.
“Workers have been forced into rethinking their retirement plans as they re-examine their personal finances and savings against the backdrop of Covid-19.
“Out of necessity, some have had to reduce or cut their pension contributions altogether while they prioritise concerns over day-to-day spending.
“With furlough extending through to April and a national lockdown announced at the beginning of the year, it’s likely more people will revisit their financial plans, as jobs and earnings remain uncertain.
Maike concluded: “We will see the retirement ramifications of the pandemic for many years to come and we need to act now to support people with their long-term savings goals.
“The research shows saving for retirement needs to be simpler, more inclusive and adaptable.
“Pensions desperately need to keep pace with the changing demands of modern-day life if we are to keep people motivated and engaged.”
As it stands, the furlough scheme has been extended to the end of April 2021 and many fear there could be a wave of redundancies on the horizon when the Government support ends.