Pension: Warning of “adversarial results” for individuals over 50 – change in old-age provision | Private finance | Funds
Saving pensions and planning retirement will be crucial as people near retirement age, and plans are often made well in advance. However, recent research by the Office of National Statistics (ONS) has shown that older workers are having a significant impact during the pandemic. The study showed, among other things, that every eighth employee over the age of 50 has changed their pension plan due to the pandemic.
“People over 50 tend to be more self-employed, a part of the job market that has been hit by the coronavirus.
“In general, both employment levels and hours worked for older people have fallen, which means that the UK is now employing 193,000 fewer people over the age of 50 due to the pandemic.”
The government has now been urged to take some action to help those over 50, as well as others who have been severely affected by the pandemic.
Mr Selby has proposed a revision of policies such as the annual cash purchase allowance – a limit on the amount a person can pay into a pension and still get tax breaks when they start withdrawing cash.
With many people turning to their pensions to make ends meet, bringing the amount a person can save from £ 40,000 to a staggering £ 4,000 is a big change.
However, Maike Currie, Investment Director at Fidelity International, provided further insight into the subject and highlighted some of the differences that various over-50s have faced.
She said: “The pandemic has adversely affected workers of all ages and this is a clear reminder of the tremendous challenges facing the UK workforce.
“If you look at the ONS data on older workers, it is female workers who were more likely than men to cut their working hours.
“In addition, the ONS reported that almost a third of all layoffs in the past year concerned women aged 50 and over who worked in sales, hotel and restaurant operations, significantly higher than in any other industry.
“Our latest research found that 19 percent of women age 50 and older have lost income in the past 12 months.”
This is understandably a problem for many women over 50 given the challenges they already face in retirement.
The gender pension gap is a much debated topic, which often means older women are forced to retire with less money than their male counterparts.
In fact, the retirement age shift will also have an impact on some who may have expected to retire earlier than they can now.
Therefore, all older workers who are looking to retire, especially at this time, may want to assess their financial position.
Some people no longer want to retire on a set time and may instead consider gradually retiring or turning a hobby into a business – and so this is worth investigating.
In addition, it is important to keep an eye on your own retirement arrangements to determine how much a person has available for retirement.
Certain people may also benefit from the help of a financial advisor, a professional who can help with more individual needs.