Thousands to delay retirement following fall in incomes

A new study has found that one in six people aged 50 and over that are in work plan to put off retirement by as many as three years or more as a result of the ongoing pandemic.

This is unsurprising considering that 26 per cent of workers over the age of 50 have either been furloughed or have had to accept a pay cut due to the pandemic. This led 38 per cent of respondents to say they expected to work indefinitely as a result.

The finances of millions of people have been affected by the current crisis, with many approaching retirement age seeing the value of their pension pots and other assets fall drastically.

Chris Knight, CEO of Legal & General Retail Retirement, which conducted the study, said: “Those who feel like they might be forced to delay their retirement should make sure they’ve gone through the process of getting a comprehensive understanding of their total savings. Many people may have more saved than they anticipate in the form of forgotten pots from previous employment.

“In addition to pension savings, it’s also worth looking at a broad range of retirement products to get a holistic understanding of what you can utilise to fund your retirement.

“Equity release, for instance, can be a useful tool for people who have significant property wealth that they might benefit from taking advantage of.”

Equity release is proving to be increasingly popular amongst retirees, with figures from the Equity Release Council showing that £1.06 billion of property wealth was accessed via equity release products in the first three months of the year, up 14 per cent during the same period last year.

Rachel Springall, a finance expert at financial website Moneyfacts.co.uk, said: “It is important to point out that the best equity release plan for consumers will depend on the amount they can borrow, a plan’s flexibility, an applicant’s age, fees and not just on the interest charged. Therefore, seeking independent financial advice is a must.”

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