Posted by Aston Avery

£5.3 billion pension hole due to pandemic

Whether it’s travelling the world, spending more time with the grandkids, and generally living the good life, we all have a dream or plans with what we’d like to do when we retire. However, visions of a sunny retirement could be dashed as job losses, furlough and squeezed finances have seen pension saving put on the back burner for some.

Many have seen their pension prospects shaken by the crisis as retirement income takes a hit as a result of the pandemic. Over 50s workers in the UK could have a £5.3 billion hole in their collective pension pot due to cutbacks on
retirement savings during the current crisis, according to new research from Legal & General Retail Retirement (LGRR).

The new findings, released as part of Pensions Awareness Week, estimate that approximately 10% of pre-retired over 50s – 1.4 million people – are continuing to save less every month when compared to before the pandemic. At present,
those over 50s saving less have reduced their monthly savings by £155 a month, however at the peak of the pandemic this was an average of £219 less a month. Overall, over 50s saving less towards retirement will have contributed £3,283
less on average over the course of the pandemic than they otherwise would have.

Aston spoke to Emma Byron, managing director at Legal & General Retirement Solutions.

Photo by Colin Watts on Unsplash

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