One in eight workers over 50 have changed their retirement plans as a result of the Coronavirus pandemic, according to the latest figures from the Office for National Statistics (ONS). 

Those on furlough were most likely to have changed their plans but they were almost evenly split on bringing forward their retirement (10%) or moving it back (9%).

Some 1.3m of those on furlough are aged 50 or over.

Those who were working from home were more likely to say they were planning to work later (11%, compared to 5% of those not working from home).

The news comes as ONS figures revealed the UK’s net worth in 2020 rose to £10.5trn, an average of £158,000 per person and a 4.4% increase from 2019. 

This was the strongest annual growth since 2016, and moderately above average annual growth of 4.2% between 2009 and 2020.

Households’ net worth grew £0.9trn, driven by increased property values, defined contribution pension values and deposits.

Investment platform AJ Bell said the latest figures shows that the government must, "rethink policy which punishes those who access taxable income from their pension with a £36,000 annual allowance cut."

Tom Selby, senior analyst at AJ Bell, said: "With over-50s facing severe income pressure, many will inevitably turn to their pension to help make ends meet.

“In this context, slashing the amount they can save each year for retirement from £40,000 to just £4,000 feels grossly unfair. It also increases the risk of these people falling back on the state in later life, an outcome which is clearly not in the interests of anyone.

“At the very least, policymakers should look at increasing the MPAA back to £10,000 – the level it was first introduced at. However, it would be preferable if the measure was simply scrapped altogether.”