1-in-5 change retirement plans because of cost of living crisis

One of the country’s leading pension advisors has called on government to take all necessary steps to help everyone, including the less well-off, to plan for their retirements in the midst of the cost-of-living crisis.

Signing on the dotted line: but have your pension plans been affected by soaring inflation?

One-fifth of adults aged 40 and over across the country have delayed their planned retirement date because of the cost-of-living crisis, according to new research by My Pension Expert.

The pension adviser commissioned an independent survey of 1,254 adults and found 37per cent of those in work believe the cost-of-living crisis has made retirement impossible for the foreseeable future. The responses were exactly the same across two age groups surveyed – 40 to 54 and over 55s.

One-in-five (21per cent) have delayed their retirement date due to rising inflation.

Meanwhile, of the over-40s currently in work, 7per cent said they had “unretired” and gone back to work in 2022 because inflation meant they needed to top up their retirement savings.

Only one-third (33per cent) said their pension savings and investments are managing to hold their value in the face of rising inflation, while 7per cent have switched pension providers or plans in 2022 to achieve better returns. But just 13per cent of those surveyed had sought pension planning advice.

My Pension Expert’s Andrew Megson said, “Even in the best of circumstances, the prospect of losing a steady source of income can be daunting for those entering retirement.

“However, with the cost-of-living crisis worsening, the disheartening truth is clearly that many are having to reconsider their retirement plans despite decades of saving.

“Given many are changing their pension plans, the fact so few have sought financial advice is concerning. An adviser can help planners assess their retirement strategy based on their financial circumstances and needs, balancing that against the economic situation. There is no one-size-fits-all. People need advice tailored to their situation.

“For this reason, it is crucial the government works to improve access to independent financial advice, ensuring people understand advice is for all and not just the wealthy.

“Doing so will prevent savers making rash or risky decisions involving their retirement finances in an effort to counter inflation, instead leading them to the comfortable, secure retirement they deserve.”

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News, views and analysis about the people of Croydon, their lives and political times in the diverse and most-populated borough in London. Based in Croydon and edited by Steven Downes. To contact us, please email inside.croydon@btinternet.com
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