COVID-19 leads a quarter of workers to alter pension contribution plans

New research from suggests that as many as one in four workers have increased or decreased payments into their pensions due to the Coronavirus Pandemic.

Those in the financial sector were most likely to have increased their pension contributions, according to the study, with 25 per cent of those working in this sector having done so.

In comparison, those working in harder hit sectors, such as arts and culture, were the most likely to have decreased their contributions, with up to 32 per cent of workers in this sector lowering the amounts they put into their pot.

Analysis of the latest data suggests that more than two million savers don’t expect to ever be able to afford to retire, while a further 3.5 million workers expected to be working in some capacity up to the age of 71, well past the State Pension age.

It is not surprising then that 80 per cent of respondents said they were not relying on the state pension alone, with the majority having taken out an additional personal pension to boost their retirement income.

Despite the ability to access pensions more easily, under half of workers stated that they did not fully understand how to go about obtaining their pension when they retire.

Commenting on the findings, personal finance expert, Salman Haqqi, said: “The thought of having to work every day for the rest of your life is a pretty bleak one, but it is the reality facing many workers across the country as the financial aftermath of Coronavirus undoubtedly impacts our future retirement plans.

“Despite millions being eligible for a state pension, and despite paying for it through National Insurance contributions, the majority of us are not relying on it.

“Planning ahead, understanding your pension options and saving as much as you can afford to budget for, really is the only way to ensure you future proof your finances.”

Link: One in four workers alter pension contribution plans amid COVID-19

Posted in Blog, Wealth Management News.