A detailed report this morning from the Department for Work & Pensions shows the percentage of workplace pension savers who actively stopped saving fell slightly during the pandemic.
It says: "The active decision stopping saving rate (the proportion of workplace pension savers who make an active decision to stop saving within each period) has fallen slightly from 0.75% in the financial year 2019 to 2020 to 0.63% in the financial year 2020 to 2021, but has remained largely consistent with previous tax years."
We asked three IFAs based around the UK for their views on this. Select comments directly below, full comments at the bottom of this article.
Carl Roberts, Managing Director at Milton Keynes-based RTS Financial Planning: “Throughout Covid, the majority of our clients have continued exactly as they were, whether in relation to contributions to, or withdrawals from, their pensions. Where we did see some material changes on the retirement savings front was with our business owner and director-level clients. Understandably, many business owner clients either paused or significantly reduced their pension contributions during Covid because they were worried how their businesses were going to be impacted.”
Joshua Gerstler, chartered financial planner at Borehamwood-based The Orchard Practice: "Outgoings during the pandemic fell for almost everyone as there were no meals out, holidays, gyms and other ways to spend money. As a result, where possible our clients increased the monthly contributions they were making into their pensions and investments. As life has started to return to normal, many of our clients are keeping these higher contributions in place as they have realised they can in fact manage with less disposable income, and that this will enable them to retire even earlier and spend more time enjoying life, which has been brought into sharp focus by the pandemic."
Adam Walkom, Co-founder at London-based Permanent Wealth Partners: “Our clients tend to be higher earners, so most tend to look to maximise pension contributions where possible, and have stuck to that approach even during the pandemic. We also have an in-house view that pension tax relief is only going to get worse, so taking advantage of it where possible is normally a prudent move.”