A fifth (20%) of UK employees aged 40-60 said worrying about their future retirement finances is affecting their ability to work, according to research by Hymans Robertson Personal Wealth.
The financial wellbeing and financial planning organisation's survey of 2,010 full-time and part-time working employees aged 40-60 across the UK also found that one-third (35%) of respondents said that worrying about their future retirement finances is having a negative impact on their mental health, while more than a quarter (27%) are losing sleep as a result.
One- fifth (22%) said they are avoiding social situations and interactions for this reason, while 18% said it is causing friction with their partner.
Two-fifths (41%) are not confident they will achieve their retirement plans, and 15% admitted that rather than taking action to alleviate these worries, they have put their head in their sand or have not implemented an approach to planning their finances.
Julie Hammerton, managing partner at Hymans Robertson Personal Wealth, said: “This research shows that worrying about future finances is having a negative impact on the mental health, as well as physical and social wellbeing of many workers at the midlife stage. Employers often prioritise mental and physical wellbeing when it comes to their wellbeing strategies. Worrying about finances can often be the root cause of stress.
“We need to intervene earlier, to give people time to course correct. Ideally, this should be earlier than the midlife point. Taking stock and taking action, no matter how small the steps, can go a long way to alleviate stress. The next tranche of retirees is going to need more help than those who’ve gone before. Having conversations with people before or at the midlife point is critical, before it’s too late.”
