Commenting on the All Party Parliamentary Group’s call for evidence on Financial Resilience Sarah Pennells, Royal London’s consumer finance specialist, said:
For further information please contact:
Meera Khanna, Senior PR Manager
- Email: Meera.Khanna@royallondon.com
- Tel: 02032 725129
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- Our research suggests that Covid-19 caused people to rethink their financial priorities and, as a result, pension contributions declined in the first twelve months of the pandemic.
- In 2020 our research found one in five (19%) of those who contributed to a pension either reduced (11%) or stopped (8%) payments, with millennials being the most likely to do so (40%).
- More encouragingly, when we conducted the research in 2021, we found that pension savers were restarting their contributions. Three in five (59%) workers who made reductions due to the pandemic had since increased their payments, including more than one in ten (12%) who had restarted contributions after stopping them altogether during the pandemic.
- Interestingly the older the participant, the less likely they were to have restarted their contributions after stopping or reducing them. Three in four (77%) of those aged 18-34 had since increased or restarted contributions, compared to half (51%) of those aged 35-54 and just one in ten (9%) of those aged 55+.
- There was also a notable gender divide, with fewer than half of women restarting their pension contributions, compared to over two thirds of men. This is concerning given that multiple studies have shown that women retire on a lower income than men.
Notes to Editors
- Opinium, on behalf of Royal London, carried out two pieces of research in 2020 and 2021 into how the pandemic affected peoples’ pension contributions. The research in 2020 surveyed 2,000 UK adults and was carried out between 9 to 12 June. The second piece of research was conducted between 3 to 7 September 2021 and also surveyed 2,000 UK adults. Research carried out by Opinium on 2,000 UK adults between 3rd - 7th September 2021.
- Read Royal London’s full response to the Financial Resilience consultation. Please email firstname.lastname@example.org for a copy.
About Royal London
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £153 billion, 8.8 million policies in force and 4,075 employees. Figures quoted are as at 30 June 2021.