One in three take action on pensions during lockdown

The survey results also showed that a large amount of pension savers are paying closer attention to their finances.

Over one in 10 have stopped or scaled back their pension contributions during the lockdown period, according to research from Aviva.

While overall 11% had stopped or decreased their contributions, that rose to 13% of all men surveyed. In comparison, 8% of women reporting stopping or decreasing contributions.

The survey of UK pension savers found that a total of 37% said they had taken action relating to their pension since the start of lockdown in March of this year.

As noted, 11% said this had entailed stopping or reducing their pension contributions, presumably in response to potential loss of income resulting from the economic fallout of the pandemic.

The survey results also showed that a large amount of pension savers are paying closer attention to their finances, including their pensions, than before the crisis. They survey found that a third (29%) said that they are now reviewing their spending habits more often than before. On top of that, 16% said that the lockdown has prompted them to think about their pension more.

Notably, 8% said they have checked where their pension is invested. That number increased to 17% of those aged between 25 and 34. Increased interest from UK savers in where their pension is invested was likely prompted by the large market volatility that has accompanied the lockdown.

While around one in 10 felt the need to stop or decrease their contribution to their pension due to financial constraints, that was not the story for everyone. For some, the lockdown has meant little change to earnings alongside a reduction in consumer spending. Likely as a result of this, roughly 5% said they had increased their pension contributions. This rose to 10% for those aged between 25 and 34.

Commenting on the findings, Alistair McQueen, head of savings and retirement at Aviva, said: “Some have taken time during the lockdown to pay closer attention to their pension performance and savings habits, which is very promising to see. It is vital that this behaviour becomes the ‘new normal’ post-lockdown, as savers face the challenge of funding their needs in later life."