A third (34%) of over 55s nearing retirement say the Covid-19 pandemic has made them more cautious with their savings and investments, according to new research from Standard Life.
More than a quarter (28%) of over 55s surveyed say losing value off their savings and investments as a result of Covid-19 remains their biggest financial concern.
This rose to a third (33%) for males surveyed, while just under a quarter (23%) of female respondents listed this as their greatest concern.
A further quarter (27%) of over 55s approaching retirement pointed to the pandemic’s impact on their pension as their biggest financial worry.
Just one in twenty (5%) say they are now more likely to take risks with their savings and investments than they were pre-pandemic.
John Tait, Planning Specialist at Retirement Advice from Standard Life, said: “Volatile markets are always a concern when it comes to the impact on savings, investments and pensions, and often more so for those nearing retirement who are more wary of the money they’ve worked so hard to save. However, investing by its nature has its ups and downs, and while global markets have seen big drops this year, they’ve since recovered significant value.
“Thankfully, there are ways to manage the risk of investments while still making your money work hard. Investing is for the medium to long term, and can give your money more opportunity to grow in value than leaving it in a cash account. Plus, spreading any money across different types of investments and geographies means that the value is less likely to change dramatically than if you invest everything in one place.”
Despite respondents’ focus on protecting savings and investments, Standard Life’s research also found that just 7% of over 55s nearing retirement would seek professional financial advice on their attitude to risk as a result of Covid-19. Overall, men were more likely to seek professional advice than women (9% vs 5%).
A further two thirds (65%) of those surveyed have no intentions to seek financial advice in relation to the impact of Covid-19 on their retirement plans.
Tait continued: “Some people may feel that financial advice isn’t for them, or see it as something complicated or excessively expensive – neither of which has to be the case.
“Speaking to a professional adviser can help you understand the actual impact of the pandemic on your retirement plans. What you hoped and planned to do may still be possible.
“Expert advisers can answer any big questions you might have and can bring to life your different options. They can also provide you with a tailored plan, designed to meet your individual needs.”
For further information, contact:
T: +44 (0)131 460 7922
M: +44 (0)7464 444 660
Standard Life polled 1,000 UK adults over the age of 55 who are still working. Research was carried out in partnership with 3Gem in September 2020.
About Retirement Advice from Standard Life
Retirement Advice from Standard Life is an advice solution which combines the benefits of traditional face to face advice with the convenience of digital.
By analysing key financial information, such as pension value, wages and investments, Retirement Advice from Standard Life can provide users approaching retirement with a monthly income overview and full financial planning recommendations.
The quick start service allows users to view their retirement income, see how it might change if they alter their retirement age, pension contributions or drawdown. This can be accessed 24 hours a day, is completely free and has no minimum income or wealth requirements. At this point no advice is provided.
For more information, please visit: https://www.standardlife.co.uk/financial-advice/retirement-advice
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