--- title: "How has COVID-19 affected retirement plans? | Pensions Advice UK" url: https://pensionsadviceuk.com/how-has-covid-19-affected-retirement-plans/ description: "Attitudes and aspirations of this year’s retirees. The coronavirus (COVID-19) pandemic has impacted on every aspect of our lives, affecting individuals’…" last_updated: 2021-12-15 publisher: "Pensions Advice UK (a trading name of GAP-GNX Ltd)" language: en-GB --- Guide # How has COVID-19 affected retirement plans? Attitudes and aspirations of this year’s retirees Last updated 15 December 2021 **Written December 2021.** Tax allowances, limits and pension rules may have changed since then, so some figures here could be out of date. For current information, see our guide to [working out if you can afford to retire](https://pensionsadviceuk.com/can-i-afford-to-retire/). The coronavirus (COVID-19) pandemic has impacted on every aspect of our lives, affecting individuals’ financial situation and for many, their plans for retirement. If you are approaching retirement in the next 12 months, your plans should be under continuous review. ##### We take a look at new research which has highlighted the attitudes and aspirations of this year’s retirees[1]. ## Shifting attitudes The pandemic has shifted attitudes and priorities across almost all aspects of people’s lives, but specifically, the timing of retirement is one thing that has changed for many. The research uncovered that 37% of people have sped up their retirement date in the past 12 months. The opportunity to work from home and escape the daily commute, has freed up time to enjoy other things. It has provided a glimpse into what retirement might look like and many like what they see. Some may have found themselves forced into an early retirement due to a change in work circumstances or redundancy. While others were doing the opposite with 12% deciding to delay retiring. When you choose to retire is important, the timing of it can limit or increase your earning potential prior to retiring. If you are considering changing your retirement date, it is important to discuss with us your updated plans so we can help you understand any impact this may have. ## Flexible retirement Traditionally when we think of retirement we think of the departure from working life. Although people often look forward to giving up work as part of their retirement plans, others have no intention of doing so fully. Whether it be a financial or emotional driver, the growing trend of working in retirement is clear from the research. Just 44% see retirement as giving up work completely. The rise in flexible working as a result of COVID-19 has also been a contributing factor; making stepping back rather than stepping away much more achievable than ever before with 22% planning a more flexible retirement by simply reducing their hours. ## Financial impact Unsurprisingly traveling remains a key aspiration. However, research shows that 30% of people have had to reconsider their travel or holiday plans in retirement. As a result of COVID-19, uncertainty around safety and travel restrictions has led to more and more people choosing a ‘staycation’ or investing in a UK based holiday home over heading overseas. Whether you’re swapping the Côte d’Azur for the Cornish coast or simply delaying your travel plans, it’s important to consider the financial impact, if any, that changing your original plans may have. ## Cross-country moves Lockdown living forced many of us to reassess what is important. With 51% worrying about not being able to do the things they want to in retirement. As mentioned, travelling is one concern However, for 43% of people, not being able to spend time with family and friends has been a worry. For the peace of mind that another national lockdown won’t hinder the opportunity to visit loved ones, there has also been a trend in cross-country moves to be nearer to children and grand-children. A move in retirement may not have been on the cards prior to the pandemic, however, this may now have become a priority for many. ## Reviewing your plan In times of uncertainty, making a plan can seem like a waste of time. However, it’s important to think ahead to retirement and review your plans for the future, and even more so as we face up to the protracted coronavirus crisis. It’s concerning to see some individuals accessing pension funds earlier than planned with others thinking about this option. While this may alleviate short term financial pressures, it leaves less of a retirement fund to provide an income throughout what can be decades of retirement. It’s important not to rush into making life changing retirement decisions without first seeking professional financial advice. 3 **Source data:** *[1] Research by Standard Life Aberdeen, carried out in February 2021 by 3Gem – 1000 adults, aged 55+ and still working.* ### Would you like to speak to an adviser? Tell us what you need help with and we’ll introduce you to an FCA-authorised adviser. It’s free to enquire. [Get started](https://pensionsadviceuk.com/qualified-advice-request/) ### Important information This content is for information only and should not be considered legal, tax or financial advice. Pensions Advice UK is a trading name of GAP-GNX Ltd. We are not authorised by the Financial Conduct Authority and act solely as an introducer. The value of pensions and investments can fall as well as rise, and you may get back less than you put in. Tax rules can change and depend on your circumstances. ## Speak to an FCA-authorised adviser Tell us what you need help with and we’ll introduce you to a qualified specialist. Start your enquiry 020 3778 0939 We’re an introducer, not an adviser. [Call us](tel:+442037780939) [Enquire](https://pensionsadviceuk.com/qualified-advice-request/) --- Pensions Advice UK (a trading name of GAP-GNX Ltd) connects UK residents with FCA-authorised pension advisers and pension tracing services. It is not FCA-authorised and does not give financial or tax advice. It acts solely as an introducer to FCA-authorised firms, who provide any advice and explain any fees before you proceed. This is the text version of https://pensionsadviceuk.com/how-has-covid-19-affected-retirement-plans/. More pages: https://pensionsadviceuk.com/llms.txt