WHY MANY PEOPLE EXPERIENCE A MIXED BAG OF EMOTIONS ON THE SUBJECT

Retirement is often envisioned as a time to unwind and indulge in our passions after years of hard work. However, recent research indicates that many individuals feel apprehensive about retiring due to financial and emotional concerns [1].

THE RISE OF ‘RETIREMENT ANXIETY’

The escalating cost of living is putting a strain on income and savings, leading to a growing phenomenon we call ‘retirement anxiety’, particularly among those over 40. The latest findings show that nearly two-thirds (58%) of over-40s are nervous about retiring, with 20% being ‘very anxious’. This represents a staggering 70% increase from our 2022 findings.

IMPACT OF ANXIETY ON RETIREMENT PLANS AND PERSONAL LIFE

The anxiety is so severe for 18% of adults that it causes them sleepless nights. More than one in ten (11%) state that anxiety negatively affects their personal life and relationships. Consequently, 13% of adults have postponed their retirement plans due to this anxiety, rising to almost two in ten (18%) for those over 55.

A CONCERING TREND FOR THE UNPREPARED MAJORITY

Despite these anxieties, the research reveals that almost half (41%) have made no preparations for retirement. To help alleviate some of these worries, here are some tips:

ASSESSING YOUR CURRENT ASSETS

If you’re among the 39% who fear not having enough money to last through retirement or the 33% who worry about affording desired activities, start by assessing what you already have. This will help you understand your proximity to your dream retirement and identify any gaps you need to ill.

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Source data:

[1] abrdn plc – Don’t let retirement anxiety push you off track – 22/09/23.

THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.