Pensioners plagued by Money Sickness Syndrome
As government data last week revealed that the number of people over the age of 65 is set to continue growing to almost a quarter of the population in 20 years time, AXA warns that today's pensioners are hit by escalating money worries that severely affect mental and physical health.
Pensioners are no strangers to financial anxiety, but a new report shows that they have to contend with yet more misery as it finds they are the group worst afflicted by Money Sickness Syndrome.
While the nation as a whole is suffering the health fallout of worrying about how to cope with the cost of living, everyday bills and debt, the link between wallet and health is no clearer than among pensioners, according to the Money Sickness Syndrome report, published by AXA.
It shows that some nine million pensioners in the UK are enduring the harsh effects of financial worries in their later years as they face symptoms of finance-related stress including anxiety (43 per cent), lack of concentration (22 per cent), insomnia (24 per cent) and feeling depressed (21 per cent). And as the government plan to phase out the default retirement age of 65, more pensioners may be forced to carry on working in fear of developing these symptoms.
In fact, the stress caused by money concerns has reached epidemic proportions across all sectors of the nation, with an estimated 42 million adults of all ages suffering from the syndrome. This is double the number of sufferers of four years ago, when the syndrome was first identified by GP and mental health expert Dr Roger Henderson.
In this latest report, pensioners emerged as among the worst affected, with three-quarters admitting to feeling stressed about their finances - particularly about the cost of living - over the last 12 months and well over half saying their stress had worsened in that time.
About 60 per cent of pensioners blamed the high cost of living on their woes, compared to just 40 per cent of high-level managers and around 50 per cent of manual workers. Pensioners also believe cost of living will remain the key factor driving their money worries over the next 12 months.
Pensioners are also the most concerned of all groups about their situation deteriorating over the next year with 53 per cent expect it to worsen compared to 36 per cent of top managers. This is perhaps not surprising as the government move to link pensions with the less valuable CPI rather than RPI, leaving pensioners facing even more cuts in their pocket in 2011.
However pensioners are also among the least likely to have taken any practical action to get out of their financial fix. While 36 per cent of pensioners have taken some practical steps to take control of their finances, the worrying aspect is that just over a third of pensioners have done nothing at all to help deal with their stress. The report shows that just five per cent of pensioners sought the help of an independent financial adviser, while about 1.5 per cent visited a debt counsellor. About five per cent spoke to a doctor and three per cent have taken prescription drugs to help with their stress. The reports also showed that 13 per cent turned to food and 13 per cent to drink for consolation.
The report also found that:
Less than half the amount of workers in higher management roles compared to pensioners feel such anxiety over money worries
One-fifth of pensioners put on weight due to money worries
13 per cent smoked more and six per cent drank more to relieve their financial stress
22 per cent were unable to concentrate
12 per cent increased their consumption of coffee
Eugene Farrell, Head of Psychological Health and Wellbeing at AXA said: ‘Pensioners today have a lot to contend with. And while it's no surprise to find money worries are a concern for them, it is deeply worrying that it is affecting their health in such a way. As an aging population, such financial and health issues are a major concern for us as nation and the consequences are likely to only get worse in the years to come. Central to dealing with Money Sickness Syndrome is to have a plan of action that not only reduces the burden of debt but in doing so helps to reduce the physical and psychological symptoms.'