Concerns grow as UK retirees can no longer maintain their standard of living
New data from wealth management group Quilter shows that the state of UK retirement is beginning to impact the mental well-being of pensioners.
The data, based on a survey of 5,000 UK retirees, reveals that more than half are worried about maintaining their standard of living over the next year, with rising costs and inflation eroding their spending power.
Notably, 72% of higher-income retirees also expressed concern about their financial future, showing that money worries are not confined to those on lower incomes.
These findings echo broader trends. A 2021 poll by the Money and Mental Health Policy Institute found that 39% of people said financial issues worsened their mental health, while 32% said poor mental health harmed their finances – a cycle that can be particularly acute in retirement.
“Retirement should be a time to enjoy the rewards of your working life, but for many, it brings unexpected stress. Financial uncertainty can be overwhelming, especially in today’s economic climate. Taking control of your finances, whether through professional advice or free guidance services, can boost confidence and support mental wellbeing,” said Ian Futcher, Financial Planner at Quilter.
A phased retirement
Futcher also highlights the psychological impact of a hard stop retirement, where people go from full-time work to full-time leisure overnight.
“That sudden shift can be jarring. After years of routine, purpose, and income, the transition can feel like stepping off a cliff. It’s not just about money; it’s about identity, structure, and mental health.
“That’s why more people are now choosing to phase into retirement, gradually reducing their hours or taking on part-time or consultancy roles. This approach can ease the emotional transition and help maintain financial stability.”
Futcher noted that a gradual transition into retirement can support both financial resilience and emotional well-being.
By reducing your working hours and partially retiring, you will be able to gradually adjust to a slower pace of life – preventing it from being such a shock to the system compared to coming to a sudden stop – while also topping up your income and boosting your retirement savings, he said.
