08 Feb 2021

Report: The impact of coronavirus on work, savings and retirement

Based on findings of an online survey of 900 UK workers and 100 retirees, conducted during January and February 2021, the report surmises that the responsibility for retirement funding and improving financial wellbeing cannot rest exclusively on the government’s shoulders. Employers have their part to play in ensuring retirement readiness and understanding the impact of the pandemic on the workforce.

Key findings:

over one in four workers surveyed (27%) have been placed on furlough by their employer since the start of the pandemic, and a further 14% have either had their working hours or pay permanently reduced
three in five (60%) workers and retirees feel life will be forever changed as a result of the pandemic
almost three in ten (28%) reduced expenditure as a result of the pandemic.

The report also found that one in five (20%) dipped into their savings account and 10% accumilated new credit card debt. Additionally, 9% withrew from retirement accounts and an equal number stopped making pension contributions, and two in five (39%) are less confident in their ability to retire comfortably later in life.