New research shows that a significant proportion of people in the so-called “sandwich generation” find that worrying about their future retirement finances is actually affecting their mental wellbeing, while one in six admit to “having their heads in the sand”.

The research from Hymans Robertson Personal Wealth (HRPW), which focusses on those born between 1964 and 1984, 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 finance

Commenting on the findings, Julie Hammerton, Managing Partner at Hymans Robertson Personal Wealth, says: “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.”

The issues are complicated for many of those who find themselves part of the “sandwich generation”: a quarter of respondents said they were bearing financial responsibilities for both their children and elderly parents.

“This is also the generation that’s been squeezed on retirement savings,” continues Hammerton, “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.”

Midlife MOTs are one answer

Calling for employees to be offered midlife financial health checks, she added: “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. Taking stock and taking action, no matter how small the steps, can go a long way to alleviate stress.

“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.

“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.”

How can RetireEasy help?

Many people would prefer to take control of their future finances in their own way and in their own time, which is where the RetireEasy LifePlan comes in.

For just a few pounds a month you can have a personalised online program that allows to you to monitor and update your plans whenever you wish. And, whatever target you are setting yourself as a retirement income, you can see at a glance if you are on course to achieve that.

By feeding in your key data, the amount you could safely withdraw each year is presented in easy-to-read charts, enabling you to make informed decisions about your future savings and retirement plans. If your situation or aspirations change, you can log back in and update your plans, and give yourself the peace of mind that comes with knowing your retirement finances are secure.

Footnote

As an employee or employer, you can find out more about the Midlife Review in a book co-written by Retire Easy director Tony Watts OBE by clicking here:

https://www.amazon.co.uk/Midlife-Review-guide-wealth-wellbeing/dp/1781334609