Almost a third (32 per cent) of retirement advisers have seen an increase in their clients wanting to access their pension pots due to financial stress caused by Covid-19, research by LV= has revealed.

According to the firm’s latest Wealth and Wellbeing Monitor, 61 per cent of advisers had seen no change and 7 per cent had observed a decline in the number of clients wanting to access their pensions.

Of the respondents aged 55-64 who were not retired, just 4 per cent had spoken to a financial adviser about what to do in retirement, with 12 per cent of this age cohort aware that they need to think about their retirement plans but have not done anything about it.

LV= also found that three-quarters (75 per cent) of those planning to retire in the next five years had not looked at their pension pot in the past year.

Within this cohort, only 17 per cent had researched how much they would need to have saved for a comfortable retirement and 16 per cent had spoken to a financial adviser about retirement.

LV= warned that many savers could be “in for a shock” when they reach their chosen retirement age, finding their they either do not have the retirement income they want or cannot afford to retire.

The firm urged the pensions industry to encourage those near retirement to “take stock” of their retirement plans and how Covid-19 has affected them.

“As this picture has developed, we have seen the stark effect of Covid-19 on the finances of the UK public,” commented LV= Saving and Retirement managing director, Clive Bolton.

“Drops in income and redundancy have caused many near retirement to have to dip into their pension savings, or even take early retirement, either way potentially damaging their ability to retire with the income they want.

“We have also observed how UK adults lack confidence that they’ll achieve the retirement they want. Many, including those on the cusp of retirement, are still underprepared.”

The monitor also found that the ‘mass affluent’, those with assets of between £100,000 and £500,000 excluding property, were more likely to be planning to retire before state pension age.

Over a quarter (27 per cent) of the mass affluent aged between 55 and 64 planned to retire before state pension age, compared to 18 per cent of all 55-64 year olds.

The mass affluent in this age cohort were also more likely to have looked at the value of their pension in the past year, with 36 per cent doing so compared to 23 per cent of all 55-64 year olds.

They were also more likely to feel they are paying enough into their pensions to have the retirement they want, with 19 per cent saying they were compared to 10 per cent of 55-64 year olds.

Just under one in five (18 per cent) of the 55-64 year old mass affluents had spoked to a financial adviser about retirement, while just 10 per cent of all 55-64 year olds had done the same.

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