A wave of ‘retirement anxiety’ is impacting over 40s in London, fuelled by concerns over the impact of the cost-of-living crisis, according to new research launched today from abrdn.
The abrdn research highlights more than half (60%) of London adults aged 40 years+ are anxious about retiring.
The research unveiled both emotional and financial drivers behind this growing trend. The majority experiencing retirement anxiety in London (56%) attribute it to not having saved enough money throughout their lifetime, with more than half blaming the cost-of-living crisis (60%).
Worries about the current economy and its impact on investments and pensions was cited by almost half of those questioned in London (43%).
On the more emotional side, over 40s from London are worried about being pigeonholed as old (17%) and losing their identity when they stop work (14%).
Planning for retirement is now regarded as a ‘stressful life event’, with over one in ten (11%) citing it as the most stressful life event. Meanwhile, across all age groups job loss and death of a loved one are still among the most stressful life events.
Psychologist Dr Linda Papadopoulos, says: ‘Retirement anxiety is an emotion of concern or worry, experienced by people yet to retire, about the prospect of retirement. This could be a concern about how they will fill their time, financial worries or perhaps feeling a loss of identity. It’s a significant issue that a growing number of people are seeking medical help with.
“There are two key reactions to issues that cause stress, one is to ignore them which just delays finding a solution to the problem. The other is to panic which can also exacerbate it. People experiencing retirement anxiety may be thinking about it constantly, be unable to sleep, and generally feeling overwhelmed – it can impact their relationships and performance at work.”
The research from abrdn underpins this, revealing that one in ten (11%) in London have sought medical help for their worries, with 18% saying feeling anxious about retirement has kept them up at night.
Work life and personal relationships are also suffering, with 11% stating that their personal life and relationships are being impacted and 18% saying it’s affecting their work.
Over a fifth (21%) say they will delay retirement due to the anxiety.
Dr Linda urges people to open up about retirement anxiety and face it head on. “The key to conquering any stressor is to address the issue by first acknowledging it, and then seeking constructive and informed support to deal with it. Retiring is one of those big steps we know we’ll take at some point in our lives and we can reduce the risk of ‘retirement anxiety’ by starting to prepare as early as possible.”
Another factor in the increase in ‘retirement anxiety’ is people’s concern about their lack of planning with 18% in London saying they were embarrassed about their lack of planning and 15% are nervous about seeking advice.
Colin Dyer, Client Director at abrdn says: “It’s clear that this growth in retirement anxiety is being fuelled by the cost-of-living crisis and worries about the economic landscape. We are seeing more and more of this every day with our clients. Planning for retirement early can help alleviate worries and anxiety and people shouldn’t be embarrassed to raise issues they are not sure or concerned about – ‘it’s ok not to know’. There are enormous benefits to seeking advice from a professional adviser, in order to get a clearer understanding of income and savings and how to best prepare for this important life stage. We work every day to give retiring clients, clarity, control and confidence about their future”
