A global retirement survey conducted in 15 countries by Aegon has revealed that workers in Britain could be exposed to lifestyle-changing financial risk later in life as a result of the COVID-19 pandemic.

According to the survey, workers in the UK are less likely to want to retire earlier than planned but almost a third of them have no back-up plan in case they are unable to do so due to ill health. Only about 30% have a back-up plan in case ill health stops them from working longer than planned.

Just 30% of workers in the UK want to stop working as soon as they reach retirement age. That compares to 57% of workers in Spain, 49% in France and 40% in Germany. Meanwhile, 47% of UK retirees retired sooner than they had planned mainly due to job loss or ill health.

However, half of retirees already end up retiring sooner than they planned to, and challenges brought on by COVID-19 could cause that figure to increase significantly. A spokesman for Aegon said that thousands of workers in Britain could find themselves in a perilous condition.

More than a half (58%) of those polled said they see an “alternative route” to stopping work immediately. By far the biggest reason for taking this route, according to 59% of respondents, is “the desire to keep active and [keep] their brain alert”.

The survey findings, however, reveal that with the impact of the pandemic on the jobs market, people need to make allowances for unforeseen circumstances and have a back-up plan in place.

The survey said, “Leaving paid employment earlier than anticipated raises funding issues and can force individuals to consider drawing upon savings earmarked for their retirement.”

It said, “A gradual transition could turn into a sudden departure from work as the impact of coronavirus proves to be an employment game-changer.”

Aegon pensions director Steven Cameron said, “With an increased likelihood that depleting savings early might mean running out of money during retirement, or even before planned retirement age, it’s important people have back-up plans.”

Around half (47%) of UK retirees say they retired sooner than they had planned and – consistent with the global results – the two largest reasons for stopping working were job loss and ill health.

Mr Cameron said, “People’s plans and their choice of how and when they retire is susceptible to a number of factors, including their own health, the need to care for others and, unfortunately, ageism in the workplace.”

Currently, just one in three workers in the UK (36%) feel they work in an “age-neutral” workplace, recognising employees of all ages.

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