This unprecedented time has undoubtedly left its mark on the way we live, think, work and perceive the world that surrounds us. But how has the pandemic impacted on the way we think about and plan ahead for our ‘golden days’?

Searching for the answer, the Pensions and Lifetime Savings Association (PLSA) commissioned the Centre for Research in Social Policy at Loughborough University to conduct a research and to report on ‘The impact of COVID-19 on thinking about and planning for retirement’.

Published in October 2021, the report aims to develop an understanding of some of the ways in which Covid-19 may have influenced people’s experiences of, thinking about, planning for and expectations regarding retirement.

Two main conclusions were made based on the findings of this study:

1. The Covid-19 pandemic has prompted people to re-focus on their retirement planning and to think about whether they are on track to have the retirement they want. The study suggests that this may be a good opportunity for employers and pension providers to build on the momentum and to really stress on the importance of accessing advice and support in thinking about retirement while this topic is fresh in people’s minds.

    

2. The severe social restrictions that we all had to live by as a result of the Covid-19 lockdown had highlighted the importance of having the freedom, choice and opportunity to socialise, travel and holiday abroad. And also to have the financial security to be able to afford this - central concepts and ideas contained within the definitions of the Retirement Living Standards*. The fact that we were forced to isolate from the outer world has made us realise and appreciate even more how important  it is to be able to participate in the world around in the simplest of ways - seeing family and friends, eating out, travelling, planning social engagements and activities.

Nineteen participants from all over England, from across a range of socio-economic backgrounds, took part in three 3-hour online discussions. Active pension savers approaching retirement (55+) and retirees were the two main target groups that took part in the research by sharing their experiences, views and ideas as part of a facilitated dialogue and further discussions.

Based on these conclusions as well as findings from another study conducted by the Centre for Research in Social Policy at Loughborough University called Retirement living standards in the UK in 2021, the PLSA updated the Retirement Living Standards for the first time in October 2021. Some of the changes included more money for eating out, a higher personal grooming budget and the inclusion of a Netflix subscription.

*The Retirement Living Standards are designed to help pension savers picture the lifestyle they want when they retire, and understand the cost. They are realistic expectations based on feedback from real people around the UK.