Rising inflation is causing retirement anxiety for most people aged over 40 years in the UK, a study by the UK-based investment company, Abrdn, in May this year revealed, Rising Inflation Causing Retirement Anxiety amongst people. 

The research, reported by FT Advisor on September 13, 2023, showed that around 58 per cent of the respondents said they were anxious about retirement, up from 54 per cent last year.  

Twenty per cent said they feel “very anxious”, an increase of 70 per cent in that category over last year’s 12 per cent, and 18 per cent said they “feel difficulty” in sleeping due to anxiety. Alarmingly, one in 10 people said stress is affecting their personal life and relationships.

The research blames financial and emotional stress for higher anxiety in people. For instance, many fear that their savings are not sufficient for retirement. The study also shows that 27 per cent feel they should have started retirement planning early. 

Though the situation may vary from country to country, it is universally considered that a lack of regular income sources, higher inflation, and a lack of a support system could create significant problems in old age, including physical and mental health issues.

Here’s What You Can Do 

Do Not Delay Retirement Planning: The Abrdn research shows that around a quarter of people surveyed felt embarrassed that they hadn’t started planning earlier. So, the first step for you is to start saving early. The earlier you start, the more chances you have of securing compounding benefits. Start when you enter your 20s, when you would most likely get into your first job.

Even if you haven’t looked into the topic of retirement yet, start saving and investing. It will help guard against financial anxiety later. 

Be Flexible To Work For A Few More Years: You might be able to circumvent retirement anxiety triggered by financial concerns by working for a few more years. Mental health issues may also be due to unforeseen situations, alcohol, medical issues, medication, etc. Also, ensuring income for extended periods would give you a sense of financial security and reduce anxiety.

Seek Professional Guidance: If you fall ill, you can’t diagnose the disease or take medicine randomly if you are not a doctor. Similarly, saving and investing systematically and regularly may require professional guidance, which you can’t undermine. Like a doctor, financial experts also charge for their advice. If you can afford one, seek guidance on investing money that aligns with your long-term financial goals. 

Create An Emotional Support System: Emotional support plays a huge part in a healthy life. Strong relationships with family, friends, and neighbors can help avoid anxiety. 

The research shows that a lack of savings for retirement years could make people vulnerable to anxiety. So, build a robust support system to face life’s challenges confidently.