Retirees Feeling the Psychological Strain

09-Aug-2010

What worries you most about the thought of retiring?  New research from insurer and investment company Scottish Widows reveals that although financial security is the greatest worry, it is only one of numerous concerns felt by current and future retirees. 

The survey respondents were split into people who have already retired and people in their fifties who have yet to retire.  Perhaps predictably, given the recent economic upheaval, 'Not having enough money to enjoy retirement to the full' came top of the list for both groups, with 30% and 56% of the votes respectively. 

However, the psychological impact of leaving work was also evident, with 'Missing the sense of structure in life that comes with working', 'Not wanting to stop working' and 'Finding the change from working to retirement very sudden' being cited as the second, fourth and sixth biggest challenges in both groups.

The survey also looked at the effects of retiring on men and women, and found that the transition from work to retirement was felt more keenly by retired men (29%) than women (24%).  However, many soon-to-be-retired respondents may be worrying unnecessarily, as when the concerns were compared with the experiences of the newly retired, 43% of fifty-somethings expected the transition to be worse than it actually was.

Alison Morris, savings expert at Scottish Widows said: "It is not just the financial shift that people have to prepare for when they retire, but the lifestyle change that comes with it. Many people want to take it easy and enjoy the free time they have when they retire, but it is important to understand that retirement can be one of life's most significant transitions so careful planning is crucial for your well-being. "

"A way to help alleviate the financial stresses that over half (56%) of over 50's expect to face when they retire is to make sure they have adequate savings to enjoy retirement to the full. Scottish Widows recommends that you save at least 12% of your salary from age 30 to retirement age to ensure you have an adequate income in retirement."

You can find advice about choosing a pension plan and annuity, and also about choosing savings and investment products, all on the Simply Finance website.  Further advice from Scottish Widows on effective saving and investment, and also on preparing for retirement, can be found at www.YourLittleBookOfMoney.com.