As government data has 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, today's pensioners are hit by escalating money worries that severely affect mental and physical health, warns AXA.
AXA says pensioners are no strangers to financial anxiety, but that its new report shows 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 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 plans to phase out the default retirement age of 65, more pensioners may be forced to carry on working in fear of developing these symptoms.
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, says AXA, as the government moves to link pensions with the less valuable CPI rather than RPI, leaving pensioners facing even more cuts in their pocket in 2011.
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
“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,” said Eugene Farrell, Head of Psychological Health and Wellbeing at AXA.
“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.”
