Pension: Warning on ‘detrimental effect’ felt by over 50s – retirement plans change | Personal Finance | Finance

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Pension saving and planning for retirement will be key as people approach the age of leaving the workforce, and plans are often made significantly ahead of time. However, recent research from the Office for National Statistics (ONS) has shown a significant impact on older workers during the pandemic. The study showed, amongst other issues that one in eight workers aged 50 or over have changed their retirement plans as a result of the pandemic.

“People over 50 also tend to be more likely to be self-employed, a part of the labour market which has been ravaged by coronavirus.

“More broadly, both employment levels and hours worked among older people have also fallen, meaning there are now 193,000 fewer people aged 50 or over employed in the UK as a result of the pandemic.”

The Government has now been urged to take some action in order to help over 50s, as well as others who have been significantly impacted by the pandemic.

Mr Selby has suggested a revisitation of policies such as the money purchase annual allowance – a limit on the amount a person can pay into a pension and still receive tax relief when beginning to withdraw cash.

As many people turn to their pensions to make ends meet, slashing the amount a person can save from £40,000 to a staggering £4,000 is a huge change which it has been argued should be reassessed. 

However, Maike Currie, investment director at Fidelity International, offered further insight on the issue, shining a light on some of the disparities faced by different over 50s.

She said: “The pandemic has had a detrimental effect on workers of all ages, and this is a stark reminder of the vast challenges faced by the UK’s workforce.

“Looking at the ONS data on older workers, it’s female employees that were more likely to have experienced reduced working hours compared to men.

“In addition, the ONS reported nearly a third of all redundancies last year were for women aged 50 years and over, working in distribution, hotels and restaurants, significantly higher than any other industry.

“Our latest research found 19 percent of women aged 50 and over suffered an income loss in the last 12 months.”

This is understandably a concern for many women over 50, given the challenges already faced at retirement.

The gender pensions gap is an issue widely discussed, which often means older women are forced to meet a retirement with less money than their male counterparts.

Indeed, the shifting up of the state pension age will also have an impact on some who had perhaps anticipated to retire earlier than this now allows.

As such, all older workers who are looking ahead towards retirement, particularly during this time, may wish to assess their financial standpoint. 

Some individuals will no longer wish to retire at a set date, and instead may consider a phased retirement or turning a hobby into a business – and thus this is worth investigation.

In addition, keeping track of one’s pension arrangements is important to see the amount an individual has at their disposal for retirement.

Certain people may also benefit from seeking help from a financial adviser, a professional who can help with more tailored needs. 



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