The research, which focusses on those born between 1964 and 1984, also showed that:
• Over a third (35%) say worrying about their future retirement finances is having a negative impact on their mental health
• More than a quarter (27%) are losing sleep for the same reason
• Over a fifth (22%) are avoiding social situations and interactions
• 18% said it’s causing friction with their partner
• 41% are not confident they’ll achieve their retirement plans
• And 15% admit that rather than taking action to alleviate these worries, they have their head in sand or have no approach to planning their finances
Commenting on the findings, Julie Hammerton, Managing Partner at Hymans Robertson Personal Wealth, says: “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.“
Talking about the challenges faced by people in this age group, she said: “Our research shows that this really is the ‘sandwich’ generation: a quarter said they were bearing the financial responsibilities for both their children and elderly parents. This is also the generation that’s been squeezed on retirement savings, as most were born too late to benefit from generous Defined Benefit (DB) pensions and born too early to fully benefit from auto-enrolment. A significant number of those we surveyed know they’re not on track, as 41% are not confident they’ll achieve their retirement plans.”
Calling for the need for midlife financial health checks, she added: “As a society, and as employers, if we wait until someone has the lightbulb moment that they don’t have enough to live off in retirement, by then it’s often too late. 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. We all know what it’s like when something’s worrying us; as soon as you start to tackle it, the cloud begins to lift.
“Many employers offer health checks as a benefit. Even our cars get a health check every year. But what about our finances? The Government’s digital midlife MOT, launched last year, is a positive step in the right direction. But when it comes to finances, people want to talk things through with others. Our research, and that of countless others, supports that view.”
Discussing the ways in which employers could deliver midlife financial health checks, she explained: “There are different ways in which midlife financial health checks could be delivered in the workplace, ranging from interactive webinars through to one-to-one guidance and financial coaching. The key thing is having access to an expert who can not only help people prepare for the future but also reduce the impact of stress on their ability to work today.
“People need help, and that help needs to come well before they hope to retire, before it’s too late. The next tranche of retirees is going to need more help than those who’ve gone before. One of the greatest initiatives of recent yeas was auto-enrolling workers into Defined Contribution (DC) pension schemes. For many in this age group, though, that came too late in their savings journey.
Others would have thought ‘my pension has been taken care of’. Unfortunately for most in this age group, they haven’t been saving enough or for long enough. Compounding matters further, very few people have other savings to fall back on. We’re just not a nation of savers. FCA data shows that one in four adults in the UK have low financial resilience**. Having conversations with people before or at the midlife point is critical, before it’s too late.”
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