Worrying impact of the pandemic on the over 50s

Over 23% of people in their 50s reported losing their job or income in the pandemic according to a new report [1] compared to the population average of 16%.  Subsequently 18% of people in their 50s are now worried about having enough money in retirement….

The impact of Covid on this age group is particularly concerning as this is the time when this group can normally increase their retirement savings as rates tend to peak as do earnings.  Disruption at this stage in life can have serious consequences in terms of planning and preparing for a good retirement.  This is further impacted for those people who struggle to continue working into their 60s and subsequently have little time to compensate.  The report further revealed that 1 in 3 people in their 50s (37%) have seen their finances negatively impacted due to the pandemic which was more than any other age group.

It was noted that  in the first 3 months of 2021, 383,000 of those over 55 had taken advantage of the pension freedoms and had withdrawn money from their pension pot.  This was an increase of 10% over the same period in 2020.

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Source: [1]  Scottish Widows Retirement Report.  Fieldwork was carried out between 23 March and 3 April 2021 through a 15 minute online survey conducted by YouGov Plc.