Retirement anxiety is a growing trend
Retirement anxiety is an emotion of concern or worry, experienced by people yet to retire, about the prospect of retirement. Examples include concerns about how they’ll fill their time, financial worries and feeling a loss of identity. And as our recent research has highlighted, it’s a significant and growing issue.
More than half of UK adults aged 40 years+ who we spoke to are anxious about retiring, with both emotional and financial drivers cited. And almost one in five say they’re planning to delay retirement due to anxiety.
- 58% attribute their anxiety to not having saved enough money throughout their lifetime.
- 57% blame the cost-of-living crisis for their anxiety.
- 45% cite worries about the current economy, and its impact on investments and pensions.
- 20% are worried about being pigeonholed as old.
- 17% are concerned about losing their identity when they stop work.
Planning for retirement is now regarded as a ‘stressful life event’, ranked more stressful than divorce by the 40-44 age group.
Indeed, our research has also revealed that almost one in 10 have sought medical help for their retirement worries, while 16% said that feeling anxious about retirement has kept them up at night. In addition, 13% say that their personal life and relationships have been impacted, while 14% say that it’s affected their work.
Another factor in the increase in retirement anxiety is people’s concern about their lack of planning. Over a fifth say they’re embarrassed about their lack of planning, and 15% are nervous about getting advice.
What the experts say
Dr Linda Papadopoulos, a leading psychologist, 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."
Meanwhile, Colin Dyer, our financial planning expert, highlights the benefits of planning and getting professional help:
“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 are concerned about – it’s ok not to know. There can be significant 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.”
Practical steps you can take to help overcome retirement anxiety
1. Understand how much money you have and what you’ll need
Many people think of their pension and the state pension as their only sources of retirement income. But don’t forget about ISAs, other savings and investments, or rental income from any property you let out. You may have more than you think.
2. Think about continuing to work in some capacity
If you don’t feel financially or emotionally ready to retire, have you thought about flexi-retirement? This basically means continuing to work in some form, while taking an income from pensions, savings or the state pension to make up your total income. And it’s a trend that’s growing in popularity. 66% of retirees we spoke to as part of our Class of 2022 retirement reportsaid they planned to do some form of work in retirement.
For example, you could stay with your current company and reduce your hours, you could get a new part-time job, or you could even start your own business.
Find out more about flexi-retirement here.
3. Take advantage of help and support
Don’t feel that you’re alone – there’s a lot of great free information and support available that may help to alleviate some of your concerns.
If you’re concerned about the impact of falling pension and investment values, and the rising cost of living, on your retirement plans, have a look at our article Could market volatility and inflation mean you have to delay retirement?
The MoneyHelper website is a free and impartial source of guidance on pensions and retirement, including phone and online support from their team of pension experts.
4. Think about getting professional financial advice
Getting financial advice can help you go into retirement feeling prepared and confident you’re making the right decisions. A financial adviser can help you work out what you want out of retirement and how you can make that a reality.
Find out how our financial planning and advice servicescould help you with retirement planning.
The information in this article should not be regarded as financial advice. Information is based on our understanding in August 2022.
FAQs
Join a peer support group. Some senior service and other community organizations offer support groups for older adults making the transition into retirement. Talking to other people who understand what you're going through can help reduce feelings of stress, anxiety, and isolation.
How to deal with retirement anxiety? ›
Join a peer support group. Some senior service and other community organizations offer support groups for older adults making the transition into retirement. Talking to other people who understand what you're going through can help reduce feelings of stress, anxiety, and isolation.
How do I stop feeling useless in retirement? ›
Here are some ideas to help you fill your days.
- Identify why you feel lost. There can be many reasons why you feel lost and down after retiring. ...
- Discover a new purpose. Having a sense of purpose is important for good mental health. ...
- Grow your network of friends. ...
- Gardening is satisfying. ...
- Welcome a pet into your life.
Retirees grapple with longevity, market fluctuations, inflation, taxes, and legacy desires, all affecting retirement savings adequacy. Manage retirement income with the 4% rule, variable annuities for assured income, and long-term care insurance for potential healthcare costs.
Why am I so unhappy in retirement? ›
Retirement can lead to a loss of that identity, leaving individuals feeling uncertain or adrift as they adjust to a new sense of self. May people struggle to now who they are without their job as a grounding influence. Reduced sense of purpose: Work often provides a sense of purpose, direction, and daily structure.
How to stop worrying about money in retirement? ›
Practical steps you can take to help overcome retirement anxiety
- Understand how much money you have and what you'll need. ...
- Think about continuing to work in some capacity. ...
- Take advantage of help and support. ...
- Think about getting professional financial advice.
The journey through the 5 stages of retirement
- Stage 1: Pre-retirement. Pre-retirement is the stage before you retire, this usually is around 5 to 10 years before you retire. ...
- Stage 2: The honeymoon phase. ...
- Stage 3: Disenchantment. ...
- Stage 4: Re-orientation and finding yourself. ...
- Stage 5: Stability.
The first thing you should do in your retirement is decide how you're going to spend it. Creating a retirement checklist or setting yourself goals and aspirations in the form of a bucket list will provide a structure, which may be lacking once you have stopped working.
Why am I so reluctant to retire? ›
“Retiring,” said Rebane, “is not easy and can bring up anxieties and insecurities, especially when one's identity has been tied up with work for so long. You may also experience some sadness and loss regarding your previous working life.”
How to get out of retirement funk? ›
Here are some things that may help.
- Stay active and moving. ...
- Get social with healthy relationships. ...
- Avoid too much web time. ...
- Sharpen your skills for better health. ...
- Travel near and far. ...
- Establish a daily schedule. ...
- Volunteer in your community. ...
- Make sleep a priority.
1. Not saving enough. One of retirees' biggest regrets is not setting enough money aside for their retirement. A recent survey showed that 59% of retirees say they regret not saving more, and 60% say they should have started saving earlier.
What is the 3 rule in retirement? ›
In some cases, it can decline for months or even years. As a result, some retirees like to use a 3 percent rule instead to reduce their risk further. A 3 percent withdrawal rate works better with larger portfolios. For instance, using the above numbers, a 3 percent rule would mean withdrawing just $22,500 per year.
At what age do most retire? ›
Right now, the average age for men to retire is 65 while the average age for women to retire is 63. While many people say they will work for as long as they can, others retire earlier than expected. However, retiring even a few years earlier than you'd anticipated can be costly.
What makes the happiest retirees? ›
In truth, the more core pursuits you can identify before retirement, the smoother the transition will be once you finally have more free time. Our research shows the four most popular core pursuits are travel, activities with family and grandkids, playing golf or tennis, and volunteering.
Are people happier after retiring? ›
77% of pre-retirees anticipate feeling happier on a typical day in retirement compared to 67% of current retirees who say they are happier. 75% of pre-retirees expect to feel less stressed, which matches retirees' experiences.
Do most people get depressed after they retire? ›
Even for people who chose to retire, saying goodbye to their career doesn't always bring happiness. Some feel anxious and saddened by the loss of routine and direction in their lives. Almost 1 in 3 retirees say they feel depressed – a rate higher than that of the adult population overall.
Is it normal to feel scared about retiring? ›
Many seniors, or even younger Americans, are afraid to retire. While not as terrifying as aerophobia (fear of flying), as common as nomophobia (fear of being without your phone) or as unnerving as coulrophobia (fear of clowns), fear of retirement is a real phenomenon for millions of older Americans.
How do you survive emotional retirement? ›
Adjusting to retirement tip 1: Embrace change
- Adjust your attitude. ...
- Build resilience. ...
- Acknowledge your emotions. ...
- Accept the things that you can't change. ...
- Redefine your identity. ...
- Set new goals. ...
- Strengthen your social network. ...
- Enroll in a retirement transition program.
It may stretch over a week or two, but it typically involves a short period of time. It is a rite of passage. But some important emotional, psychological, and physical changes take place almost immediately.
What are the mental issues with retirement? ›
Some feel anxious and saddened by the loss of routine and direction in their lives. Almost 1 in 3 retirees say they feel depressed – a rate higher than that of the adult population overall. Cicalese says she misses the structure of her former profession.
