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, according to new research from Scottish Widows
The research 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 Scottish Widows inaugural Retire-Easy report.
Whilst money worries were the biggest challenge that retirees faced after they finished working (with 30 per cent 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 per cent) 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 per cent) 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 per cent) found that they simply didn't have enough money to fully enjoy their new life.
Scottish Widow’s research also showed that men (18 per cent) found the change from working to retirement very sudden compared to women (12 per cent) who seemed to be able to cope better.
The psychological effects of retirement are also a major concern with 29 per cent of retired men, who say that the transition from working to retiring was hard to deal, with compared to 24 per cent of retired women who felt the same.
However, the expectations prove to be worse than the reality, with over two fifths (43 per cent) 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 per cent) who won't be in good enough health to enjoy their retirement, around one in five (22 per cent) who don't want to leave a job that they enjoy, and a further one in eight (13 per cent) won't know what to do with the extra time on their hands.
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Biggest challenges that are/will be faced when you retire
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Retirees
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Over 50s yet to retire
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Not having enough money to enjoy retirement to the full
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30%
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56%
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Missing the sense of structure in life that comes with working
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23%
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30%
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Not being in good enough health to enjoy retirement
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17%
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13%
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Enjoying their job and not wanting to stop working
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16%
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22%
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Having less of a social life
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15%
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8%
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Finding the change from working to retirement very sudden
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15%
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15%
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"It is not just the financial shift that people have to prepare for when they retire, but the lifestyle change that comes with it,” said Alison Morris, savings expert at Scottish Widows.
“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 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 per cent of your salary from age 30 to retirement age to ensure you have an adequate income in retirement."
