Data crunch: Seven million people, representing more than a third of savers, have taken action relating to their pensions during the coronavirus lockdown, with almost one in three reviewing their spending habits more often, according to analysis by Aviva.
The research is the result of a survey carried out by Censuswide on behalf of Aviva, which polled 2,020 adults in the UK. It found 37 per cent of savers had taken some form of action relating to their pensions, while 29 per cent reported using their spare time to reflect on their spending.
A majority – 63 per cent – of respondents reported taking no action during the lockdown. Of those who did take action, 15 per cent checked the value of their pensions, 8 per cent checked where their pensions were invested, and six per cent decreased their contributions.
Men and women have been impacted differently, the survey found, with men more likely to have checked their pension value and investments during the lockdown, as well as being more likely to have stopped or decreased their contributions during the same period.
In the first instance, 27 per cent of men reported having checked the value of their pensions and investments compared with 18 per cent of women. When it came to stopping or decreasing contributions, those figures were 13 per cent for men and eight per cent for women.
The financial impact of the virus has hit middle-aged workers particularly hard, according to the survey. One in 10 respondents aged 45-55 reported that they have had to delay their retirement plans as a result of Covid-19, and a further 6 per cent could be forced into early retirement.
The same group is over-represented when it comes to negative perceptions of their financial situations, with 46 per cent of respondents in this age group expressing a lack of confidence, as opposed to 38 per cent across all adults.
Commenting on the report, Alistair McQueen, head of savings and retirement at Aviva, said: “Some [pension savers] have taken time during the lockdown to pay closer attention to their pension performance and savings habits, which is very promising to see.
“It is vital that this behaviour becomes the new normal post-lockdown, as savers face the challenge of funding their needs in later life.”
While paying close attention to personal finances is good practice, Mr McQueen said: “This shouldn’t necessarily mean they need to take action. While it may be concerning to see Covid-19 rattle the market, long-term investors like pension savers should be careful not to overreact.”
He added that if people are unsure what to do, “their best investment could be to seek some professional financial advice”.
“An adviser’s expertise should help to navigate situations like the one we’re in and, while there may be a charge involved, the peace of mind this brings carries value in itself.”
