Saving for your retirement is an important aspect of financial planning. If you plan on living out your retirement years comfortably and without any nasty surprises, then saving is a must.

But currently, the coronavirus outbreak has hit all aspects of our lives, with many Brits concerned about their jobs, outgoings, debts, retirement and many other financial impacts. With seven in ten Brits fearing for their finances1, and as the epidemic worsens, it is set to have long-term effects on personal finances.

The latest figures by Blacktower Financial Management Group show that you need to save £375,676 to retire comfortably on an income of £26,834 per year. But, which areas in the UK are saving the most, and how is COVID-19 impacting retirement savings?

COVID-19 impact on retirement savings

COVID-19 is having a big impact on global financial markets, and this can be hard to watch if the value of your personal savings is falling. This is causing fear and uncertainty amongst Britons, as we don’t know what the lasting impact will be. But it’s important to remember that pensions are a long-term investment, and it’s normal for the value of investments to move as the economy goes through phases of fluctuation. History has shown us that values go up in the long-term, despite short-term ups and downs.

Pensions are normally mixed in several assets such as bonds and commodities, to spread the risk and reduce impact. The UK government bonds have seen a positive return over this unsettling period due to a rise in demand. Pensions are a long-term investment, so it’s important to look beyond the disruption.

The best way to boost your pension during the pandemic is to try and make monthly payment contributions, even if you pay a smaller amount for the time being.