Third of people close to retirement have accelerated plans

More than a third (37 per cent) of people who are close to retirement have accelerated their plans due to the coronavirus pandemic, a report has found.

Lockdowns, health worries due to the pandemic and job uncertainty were the three main reasons for speeding up retirement, Standard Life Aberdeen found.

Women who are close to retirement were less likely to feel confident they are financially ready to finish working than men.

The report found a third (34 per cent) of women were feeling very confident financially about finishing work versus two in five (43 per cent) men.

The research was included in Standard Life Aberdeen's "class of 2021" report, which also found that more than a third (37 per cent) of those planning to retire this year were worried about not having enough money to last throughout retirement.

2021 retirees plan to spend, on average, £21,000 a year in retirement.

The average value of a class of 2021 pension pot was £366,000 - but a third (33 per cent) of those surveyed had less than £100,000 saved.

John Tait, retirement advice specialist at Standard Life Aberdeen, said: "Vast numbers of those retiring this year risk running out of money in their retirement. Retirement is a marathon, not a sprint, and many could be going into it without sufficient preparation or planning.

"Pension pots are without a doubt the most popular option for funding retirement, but it's so important that retirees consider any other savings or assets they can use when deciding whether they can afford to retire or not."

Nearly half (48 per cent) of those surveyed were planning to reduce their usual spending to support themselves in retirement, while a quarter (27 per cent) plan to work part-time to help financially. One in five (21 per cent) were planning to sell their home or downsize to fund retirement.

The report also found people had apprehensions about retiring during a pandemic.

More than half (51 per cent) were worried about not being able to do things they planned, while two-fifths (43 per cent) were concerned they would not be able to see friends and family.

Three in ten had concerns about their pension falling in volatile markets, and nearly a fifth had seen their income fall over the past year.