New research from Aviva has shown how people have reacted to the Covid-19 pandemic, with a large number of adults’ retirement prospects affected, those approaching midlife feeling the most pressure.
More than half (54%) of UK adults said the pandemic had affected their plans to retire, with 68% of those aged between 35-44 feeling an impact.
Almost one in six (14%) of those in the 35-44 age bracket said they expect their retirement date to be pushed back, while 16% have lost confidence in their ability to live comfortably in retirement.
The research also showed that nearly one in five (18%) people feel less secure about their financial future, rising to more than one in four (27%) among those aged 35-44.
Aviva said its research had shown a trend towards people re-evaluating their priorities in the wake of the pandemic with nearly three in five (59%) people feeling the pandemic has made them question what’s important in life.
However, the findings revealed that while 41% felt the pandemic had made them feel more in control of their priorities, the same amount also felt they have less control than they did before.
Overall, 59% say they feel less comfortable about coping with unforeseen events than they did before the pandemic, particularly those aged over 55 (70%).
Aviva’s findings showed more than half (53%) of adults have suspended or cancelled a planned life event during the pandemic, with almost one in six (16%) holding back from starting a new job and 13% postponing a house purchase.
Despite this, Aviva said others continue to push ahead with their ambitions, with 19% fast-tracking a move to a new job, while 13% plan to start a new business and 13% are trying for a baby.
Meanwhile, two fifths (41%) say life during Covid has encouraged them to build more long-term savings. People aged 35-44 are most likely to feel compelled to save more for their futures (54%), followed by 51% of those aged 25-34.
Alistair McQueen, head of savings and retirement at Aviva, said: “For many of us, the pandemic has had a profound impact on our outlook and caused us to look again at our priorities. The experience of a global health crisis has led many people to put plans on hold and consider the wider implications around significant issues like retirement plans.
“The experience of having decisions taken out of our hands through successive lockdowns has left many people longing for a sense of control. But much as it’s encouraging to see people striving to build more long-term savings, our findings show anxiety about the future is still weighing heavily on their minds.
“As we all juggle personal priorities against a backdrop of uncertainty, it’s important to look for steps that can help us take control of our circumstances as best we can.”
