Pandemic causing life plans to be put on hold
A study of investors by Fidelity International found that investors who had plans to travel (56%), get married (46%), or buy their first property (50%) have all put their plans on hold.
And despite early speculation that lockdown may cause a winter baby boom this year, almost half (47%) of UK investors who were thinking of starting a family say they are worried that the outbreak has delayed or postponed their plans to start a family.
The combined impact of the health crisis, an economic downturn and uncertain income and job prospects have had repercussions on other life plans too.
More than two in five (41%) parent or grandparent investors are worried Covid-19 has delayed their plans to help younger dependants financially, fuelling fears that the coronavirus could cause a ripple effect through generations to come.
Parents and grandparents are worried the pandemic has postponed plans to save for major expenses for their loved ones such as university fees, first homes and weddings.
Emma-Lou Montgomery, associate director for personal investing at Fidelity International, says: “The impact of Covid-19 will ripple through generations for years to come. Pay cuts, job security concerns, volatile markets, and a possible recession are just some of the reasons why many of us have had to re-think life events.
“In addition to the financial repercussions of the crisis, the pandemic has increased concerns about our health, infrastructure, and simply how unpredictable life can be – prompting many of us to question some of the big choices we might previously have made.
“Many people have been forced to put some of their life plans on ice. Investors must now take stock of their financial future and work out what impact the pandemic has had upon big life events; parents and grandparents might not be able to offer younger family members a full house deposit, travel plans may take longer to save for, or it might feel right to wait until the picture is clearer before starting a family.
“By assessing what they can do to relieve some of the anxiety caused by the pandemic, investors can take steps to feel more in control.”