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Don't let Covid-19 derail your plans

Workers in their 50s have been the silent victims of this pandemic. Not only are they just as likely as younger workers to be made redundant, those still in work are actually more likely to have suffered a pay cut.

One in four over-50s still in work has been furloughed or suffered a drop in earnings, according to Legal & General, an insurer.

A large proportion have reacted by opting out of paying into their pension or reducing the amount they contribute. However by doing so they risk leaving themselves 100,000 poorer in retirement.

Although ditching a pension feels like a short-term solution, it will deliver a quadruple blow later on. You will have put less into your retirement fund, you’ll miss out on contributions from your employer – essentially free money – and vital tax relief from the Government. There's lost investment growth as well.

The average over-50 who has cut their monthly pension contributions has reduced it by 165 – or 1,980 a year. A 50-year-old who earns the average wage of 30,566 a year and has a typical pension pot for that age would be 98,700 worse off by the age of 75 if they never saved into their workplace pension again.

Those who have been furloughed will also be concerned about whether they will have a job when the scheme ends at the end of October. More than 130,000 over-50s have fallen out of the workforce since January – the first time the number of people in this age group in work has dropped in almost 30 years.

Older workers made redundant will find it much harder than younger ones to get a new job. Predictions suggest up to a quarter of a million over-50s will never work again following the crisis.

However it is not all doom and gloom. Telegraph Money is on hand with tips and tricks to make your savings go further. From how to retire in a recession without running out of money to how to retire at 55 and make your money last another 30 years: stay tuned for more.

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