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Retirement plans changed due to COVID-19

The coronavirus pandemic has changed retirement plans for one in eight older workers, according to research commissioned by the Institute for Fiscal Studies (IFS).

Based on data from the English Longitudinal Study of Ageing COVID-19 study, the IFS revealed 13% of the 10,000 people aged 50 and over have already changed their planned retirement age.

Data revealed 8% of people surveyed are now planning to retire later than previously intended.

A third of older workers report that their financial situation has worsened as a result of the crisis, with those who were already struggling financially much more likely to report a worsening of their financial situation than those who were better off.

Rowena Crawford, associate director at the IFS, said:

"The current pandemic risks having serious and long-term financial consequences for older workers, affecting living standards into and through retirement. The crisis has also been disruptive to major life plans, with one in eight older workers so far changing the age at which they planned to retire.

"Those on furlough are now more likely than those working to be planning to retire earlier and it will be important to monitor that this does not represent a rise in involuntary retirement among people discouraged from finding new work."

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