State Pension UK: Retirement plans disrupted due to COVID-19 - are you affected?
State Pension age is generally considered as the point at which Britons will wish to depart from the workforce. This is because it is at this point people can transition from a regular income via salary, to the income from the Department for Work and Pensions (DWP), alongside any other savings they may have. But for those approaching their state pension age, retirement plans have been significantly disrupted this year.
New research by Standard Life has shown the impact of COVID-19 on retirement, and it does not look favourable for a large number of Britons.
Four in 10 over 55s asked said they felt a sense of job insecurity in relation to the pandemic – equating to an estimated 5.8 million people across the country.
And amid the ongoing uncertainty brought about by the pandemic, retirement plans could be turned on their head altogether.
A third of the 1,000 over 55s asked by Standard Life said they would choose to give up work altogether if made redundant within the next 12 months.
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He said: “While support measures have been put in place to curb unemployment, we’ve regrettably seen a raft of redundancy announcements as a result of COVID-19 with huge speculation that more announcements will follow in the months ahead.
“Those nearing retirement are understandably feeling particularly concerned about job security and are looking for reassurance and support when it comes to saving for the future.
“But our research and experience of working with clients in this situation has found that for some a redundancy could provide an opportunity to change or even accelerate their retirement plans.
“While the process can feel daunting, there are a series of steps people can take to adapt their plan.
“The best place to start is pulling together a view of all their potential retirement incomes, pension pots and savings.
“When you have this, you can work with a professional planner to get an accurate projection of the retirement income and lifestyle that is possible.”
Mr Tait also advised people to take retirement advice when planning for their later years.
Financial advisers can often look at the various sources of income a person has, including state pension, workplace pension and private arrangements to plot a retirement journey.
For those who are hoping to understand their state pension entitlement, there is an action to take.
The government has made the state pension forecast tool available to Britons to help them in their retirement journey.
As such, the service can help people find out how much state pension a person can receive, when, and how to increase it if possible.
It is worth noting the service cannot be used by those who are already claiming their state pension, or people who have deferred claiming it.
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