Young savers and the self employed saw the largest proportional increases in financial vulnerability during the pandemic, rising by more than 40 percent, according to the Financial Conduct Authority.

Since young people are now more likely to be much less comfortable retiring than their parents, it is important to start preparing for retirement sooner rather than later.

Advice firm Purely Pensions has warned that savers in their 20s could lose more than £21,000 at retirement if they put off making contributions to their pensions for the first five years of working.

Matthew Amesbury, head of Pensions Advice at the firm, says the pandemic has delayed young people starting to save for retirement since more young people are seeking ways of maximising take home pay.

He said this meant many stopped pensions contributions, which would result in them missing out “massively on the benefits of compounding interest and long-term growth’’.

Pandemiceffect

Earlier this year, a survey by workplace savings provider Cushon found concerns about saving for retirement reduced by 20 per cent in May compared with the same period last year, while 75 per cent said the coronavirus made them realise having accessible savings was ‘equally important’ to having a pension.

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