The pandemic has negatively impacted so many areas of life and one significant area which will be a large concern for many is retirement. Many people that are working and approaching retirement now find themselves concerned over whether or not they will have enough money for retirement, especially if they have had to dip into their savings as a result of the pandemic.
Confidence Levels Falling
A study from Key Advice found that retirement confidence levels have fallen dramatically among over 55s and those still working in 2020, largely as a result of the pandemic. The study revealed that the percentage of people worried about running out of money had increased from 27% to 34% from Q4 2019 to Q3 2020 and an increase of 39% to 48% of people worried about falling ill and having to pay for care.
Women & Men Concerned
From these statistics, women who were still working were the most anxious (48%) which is understandable when you look at the gender pension savings gap – the ONS data shows that the value of women’s pension savings can be up to 40% less than men. Despite this, concerns were fastest rising amongst men at 9%.
Will Hale, CEO at Key, commented:
“All these concerns and more are being exacerbated by the impact of the current pandemic which has seen older consumers lose their jobs, stop saving and dip into the funds they have already set aside. Women who are disproportionately represented in hard-hit industries like hospitality and retail are already finding that their lower average salaries mean they are more financially vulnerable in retirement but both genders have been hit and are concerned about the future.
“Now more than ever it is important to take a holistic look at retirement finances and ensure that you are using all your assets to their full potential. For most over-55s, their home is worth more than their workplace pension so it is vital that this potential source of financial support in retirement is fully considered.”
This means that in worrying times like this where people may have fresh concerns about their retirement, it could be worth looking into alternative options like equity release. Equity release is providing to be popular right now due to the pandemic and could greatly relieve financial stress both in the short-term and for retirement.
It is understandable that people are worried about what their retirement might now look like as a result of the pandemic, especially for those that have struggled in the last year. This is why people need to look past their workplace pension and instead look to alternative ways to build wealth for the future and manage any difficult periods and there are a number of ways in which you can do this.