Retirement Income  

Over-55s in ‘most stable’ financial position throughout Covid

Over-55s in ‘most stable’ financial position throughout Covid
 Credit: Dominic Lipinski/PA Wire

The majority of people haven’t needed to make financial changes to support themselves or their family throughout the pandemic, with over-55s in the “most stable” position, according to Schroders Personal Wealth.

A nationally representative survey of 2,000 adults in July by the financial planner found 71 per cent said they hadn’t needed to make any changes, but that this differed “greatly” between age groups.

Over-55s were found to be in the “most stable” position (84 per cent) compared to 67 per cent for the 35-54 age group, and 59 per cent for 18-34 year olds.

It also found that over-55s had resisted raiding their pensions since the pandemic hit, with only 1 per cent needing to take money out of their pension or investments.

Despite the majority of people demonstrating financial resilience, the financial planning firm added that “signs of stress” were still evident, as 29 per cent of consumers said they had missed a bill payment.

One in six (16 per cent) had been “forced” to draw from their savings to help see them through any challenges caused by the pandemic.

The survey also found one in five (19 per cent) described financial security as a “higher priority” since the pandemic, and 13 per cent said they were now making plans for their financial future.

It comes as a ‘financial scoring’ system developed by SPW showed the nation scored a three out of 25 for protecting against the unexpected, and five out of 25 for planning for the future.

The 'financial health' of the nation

Getting the basics right: day-to-day running of household finances20/25
Managing borrowing: being on top of debt24/25
Protecting against the unexpected3/25
Planning for the future5/25
TOTAL52/100

Commenting on the scores Claire Walsh, head of advice strategy at Schroders Personal Wealth, said: “Whilst it’s encouraging to see that the majority of UK consumers are confident when it comes to getting the basics right and managing their borrowing, it’s concerning that they aren’t doing enough to protect against the unexpected and plan for the future.

“Individuals are leaving themselves exposed to financial shocks. A lack of planning means people might think they are on track with their finances and that they don’t need to do or change anything until it’s too late.

“Our new financial health score aims to identify where people need help, enabling us to support them in improving their financial wellbeing.”

chloe.cheung@ft.com

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