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.”

ENDS

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For further information, contact:
Calum Anderson
calum.anderson@citypress.co.uk
T: +44 (0)131 460 7922
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Methodology

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

About Standard Life

  • At Standard Life, we’ve been helping customers with their life savings for nearly 200 years.
  • Today the Standard Life brand is trusted by over 4.5m customers, helping them to manage their life savings so that they and their families can enjoy a better future.
  • Customers come to us through advisers, through their employers and direct to Standard Life.
  • We know that customers need more support than ever to make important financial decisions, so we use our expertise to help them get good advice and make better financial choices for their future. And our close relationship with Aberdeen Standard Investments allows us access to world-class investment solutions.
  • In the UK, our Award Winning Wrap and Elevate Platforms are used by financial advisers to provide financial planning and wealth management services to their clients.
  • Through Standard Life Assurance Limited, we offer a range of high quality products for workplace pensions, personal pensions, savings, investments and retirement. These are sold in the UK, Ireland, Germany and Austria. Standard Life Assurance Limited is owned by Phoenix Group and uses the Standard Life brand under licence from the Standard Life Aberdeen Group.
  • Ultimately we want to help customers make good choices with their life savings, whether they are saving throughout their working lives, enjoying financial security in retirement or planning to pass wealth on to loved ones.
  • We believe that experience matters, customers need us and together we will succeed. Collectively we believe this means that there’s a lot to look forward to.
  • The value of investments can go down as well as up, and may be worth less than originally invested.

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