Many people have used the last couple of years to make positive life changes.
Three in five people have questioned what is important in life, while half feel their priorities have changed1. Two in five credit the pandemic with encouraging them to build more long-term savings. However, one in four now feel less comfortable about coping with unforeseen events than they did before the pandemic. Likewise, one in five feel less secure about their financial future, rising to one in four among the 35 to 44 age group.
Although 35 to 44 year-olds are the largest cohort to face disruption to their retirement plans, they are also the most likely to feel compelled to save more as a result of the pandemic (54%). While 14% of the same age group fear they may have to push back their retirement date, one in ten have been able to put extra money towards their retirement because of lockdown.
Life on hold
Meanwhile, more than half of UK adults have suspended or cancelled a planned life event during the pandemic. Of those affected, 16% put off starting a new job, 13% postponed a house purchase, 12% re-considered plans to start a new business, 10% stopped trying for a baby and 10% delayed a wedding.
Don’t get in a JAM
With 2022 hailed the ‘year of the squeeze,’ with outgoings increasing due to a higher energy price cap and National Insurance contributions, and real pay stagnating because of the effects of inflation, the number of households ‘just about managing’ (JAM) is set to grow. We can help you make informed choices about your money and build your financial confidence and resilience. However the pandemic has affected you, we can help refocus your goals, get your plans moving again – so you are well equipped to take control of your financial future.
1Aviva, Nov 2021
The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.