Eight out of 10 savers have not made any changes to their pension, despite the financial problems caused by the coronavirus pandemic, according to recent research.
The People’s Pension found that 82 per cent of pension savers were continuing to contribute to their retirement plans. This is despite the fact that a significant proportion (45 per cent) said their finances had been impacted by the Covid crisis.
This nationwide research – conducted by YouGov – found only 3 per cent of those questioned had stopped pension contributions altogether during the past seven months, while just 2 per cent had withdrawn money from their pension plans.
The survey also found that 2 per cent said they had cut back on pension contribution since March. However a further 2 per cent had actually increased what they pay into their pensions.
Around one in seven (14 per cent) have checked the value of their pension savings during this period.
During this period the economy has experienced its biggest slump since records began, with the recent rise in unemployment being the biggest jump in 11 years.
The People’s Pension director of policy, Phil Brown says: “Despite the financial hardship that coronavirus has caused, this national survey confirms what our data has shown us throughout; that it has had very little impact on pension saving.”
The extent of this hardship is shown in the fact that 15 per cent of those questioned said they had been furloughed at some point during 2020, with a further 8 per cent having working hours reduced and 5 per cent saying they have had to take a pay cut.
Brown adds: “Even though there were early fears to the contrary, workplace pension saving through automatic enrolment has held up very well during 2020, confirming its status as one of the most successful government policies of the 21st Century. This research serves as a timely reminder of how much value millions of workers place on saving for their retirement.”
The survey also revealed that the pandemic had prompted one per cent to delay their retirement plans, while one per cent of all UK adults with a pension retired earlier than they had anticipated.