Covid causes one in five to delay retirement
That’s according to new research from Close Brothers, which found that a significant number of those aged 55-64 (14%) have made the same decision because of Covid-19.
This is despite the vast majority of older workers believing they were financially prepared for such a crisis. The report found that just 5% of those aged 65-74 and 16% of those aged 55-64 admitted they were unprepared for the Covid-19 crisis on the money front. That’s compared to one in four (25%) workers aged 18-34.
I’ll be ready next time
The report found that workers are taking a step back and working out what changes they can make to improve their financial resilience should another crisis hit.
Around two in five (38%) of those in the 65-74 age bracket either already have or plan to male changes to their financial preparedness, and this jumps to 43% of those aged 55-64. Nonetheless this is a far lower percentage than their younger colleagues ‒ almost three quarters (73%) at least plan to make changes in order to boost their financial resilience.
Jeanette Makings, head of financial education at Close Brothers, said that the pandemic risked being a ‘sliding doors’ moment for workers in the UK, impacting people’s financial health in a multitude of different ways.
And she called on employers to take a more individual approach to their staff, to help improve their financial position.
“Understanding employees’ financial health as a whole, and knowing those that need most help, has to be the starting point to ensure that an inclusive, effective, and targeted financial wellbeing programme is implemented. A single channel, ‘one size fits all’ financial wellbeing approach is likely to fail many,” she concluded.
How much money do I need to save for retirement?
The question of what is a sufficient amount to save for a comfortable retirement is a big one, and one for which there isn’t a simple answer.
A recent study by Standard Life found that those nearing retirement are not preparing properly, and only budgeting for their pension saving to last a decade, despite the reality of their life expectancy meaning they will likely live for far longer.
There are serious gender issues at play here too, with women found to be retiring on an incredible £100,000 a year less than men, while many of us overestimate just how generous the state pension is.