Tough psychological impact for new retirees
With retirement on the horizon, many people approaching retirement will be thinking about how they will fund their golden years, but many don't consider the impact it will have on them emotionally. New research from Scottish Widows reveals that it is just as important to consider the emotional and practical implications of these lifestyle changes as many will be in for a shock when they reach retirement, according to the inaugural Retire-Easy report being launched today.
Whilst money worries were the biggest challenge that retirees faced after they finished working (with 30% of people stating that they did not have enough money to enjoy their new free time to the full) many people also highlighted the lifestyle challenges that came with the transition. Faced with a sudden lifestyle change, one in seven (15%) retirees said that one of the biggest challenges they faced was coping with their reduced social life after leaving work.
Further to this, nearly a quarter (23%) of retirees missed the sense of structure in their life that came with working, leaving them at a loss of what to do with all their free time, and three in 10 (30%) found that they simply didn't have enough money to fully enjoy their new life. The research also showed that men (18%) found the change from working to retirement very sudden compared to women (12%) who seemed to be able to cope better.
The psychological effects of retirement are also a major concern with 29% of retired men stating that the transition from working to retiring was hard to deal with compared to 24% of retired women who felt the same. However, the expectations prove to be worse than the reality with over two fifths (43%) of over 50's expecting the transition into retirement to be harder than retirees actually find it to be.
This added anxiety can be seen in the increased concerns future retirees have about the challenges they will face when they stop working including over one in eight (13%) who won't be in good enough health to enjoy their retirement, around one in five (22%) who don't want to leave a job that they enjoy, and a further one in eight (13%) won't know what to do with the extra time on their hands.
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. For many retirees the shift from a busy working life to having time on their hands is extremely stressful so they need to plan ahead to ensure this change doesn't come as too much of a shock.
"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 out more about retirement planning at ‘Your little book of money 2010' - an independent guide to finance. Available as a downloadable PDF and via a new website at scottishwidows.co.uk/littlebook.