Retirement delay for over-50s
One potential consequence of the coronavirus pandemic could be a retirement delay for millions of over 50s.
According to new research by Legal & General Retail Retirement, as many as 1.5 million employees over 50 could push back their retirement age due to the pandemic.
Their research found that 15% of over 50s plan to retire at a later date due to the financial consequences of the pandemic.
On average, retirements are likely to be delayed by three years.
Around a quarter of those over-50s surveyed said they would keep on working indefinitely, either on a full-time or part-time basis.
L&G reported that 10% of over-50s could delay their retirement age by more than five years, thanks to the virus.
Looking at older workers who have been furloughed or experienced a pay cut during the pandemic, nearly a fifth said the financial consequences of Covid-19 would mean a delayed retirement.
Around 4 in 10 said they expected to work indefinitely due to the pandemic.
Chris Knight, L&G Retail Retirement CEO, said:
The financial impact of the Covid-19 pandemic seems to be particularly pronounced for people aged over 50 who are still in work.”
While some people will choose to work for longer, or indefinitely, the key consideration when it comes to this research is that it seems this decision has been driven by the financial impact of the pandemic, rather than personal choice.
We know this is a key stage in people’s retirement planning so seeing a material impact on your household income will naturally lead to pessimism about achieving your retirement goals.
While it would be naïve to say that these financial issues will not have an impact on people’s ability to retire, it’s important for people to have a strong understanding of the options available to them before concluding that their retirement needs to be delayed or forgotten indefinitely.