Inflation “stoking fears” about retirement among Brits: study

The decades-high level of inflation is driving a wave of “retirement anxiety” in the United Kingdom, a new study has found.

The study is covered in an article in The Independent, posted on the Yahoo! site.  

The study, carried out for arbdn, an asset manager, found that “54 per cent of over 40s already feel anxious about retirement,” and that those aged 40-44 are even more worried about retirement, with 61 per cent experiencing anxiety.

What are they worried about?

The article cites general worries about “rising bills, inflation, and not having enough in their pension pots.” Other concerns about retirement included “being labelled ‘old’ or losing their identity when they stop working.”

“Retirement anxiety is an emotion of concern or worry, experienced by people yet to retire, about the prospect of retirement,” psychologist Dr. Linda Papadopoulos tells The Independent. “This could be a concern about how they will fill their time, financial worries or perhaps feeling a loss of identity.”

The article suggests that inflation – which is higher than in Canada, having crashed through the 10 per cent barrier there – is driving the wave of anxiety.

Next, the article offers up some things that folks in their 40s can do now to help address the new problem of retirement anxiety.

First, The Independent reports, is the need to plan.

“No matter how many years or decades you are from retiring, it’s never too soon to start planning,” the article suggests. In the story, Dr. Papadopoulos suggests people start thinking about the financial health the way they think about their physical health.

“It’s interesting that when it comes to our finances, we don’t take many steps to help protect our future self,” she states in the article. “I’d encourage people to think about their new beginning (in retirement). What do they want to learn, what might they have not focused on due to work that they could now focus on?”

Other steps the article suggests are seeking the help of a professional financial adviser, and also to “focus on the positives” of retirement.

“Often people are afraid about getting old, feeling lonely and struggling to make ends meet, but there are so many positives to retirement too,” states psychotherapist Lindsay George in the article.

“You will have more time to explore new hobbies, try new things and reconnect with old friends. Rather than seeing retirement as cutting off your possibilities, you could look at it as an opportunity for you to make more new opportunities in your life,” she tells The Independent.

The article concludes by suggesting that continuing to work past usual retirement age – or working part time – is a way to address fears about having enough money. Another important step is to talk about your retirement fears, either with friends or family or a mental health professional, to help address any “irrational thinking” your anxiety may have created.

It goes without saying that the financial side of retirement needs to be addressed. If you are among the minority of Canadians with a workplace pension plan, you are ahead of the game on the retirement income front. If you don’t have a plan, and are facing the prospect of saving and investing on your own for retirement, consider the Saskatchewan Pension Plan. SPP will help you grow your savings through low-cost professional investing, and at retirement, you’ll have the option of receiving one of several lifetime annuity options. Check out SPP today!

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We all know what we’re not doing thanks to the pandemic – but what sorts of things will we all be doing once that first blessed day of COVID-free living begins?

According to the New York Times, the very first thing for many will be getting back in touch with family and friends.

“Oh, to be able to shake hands again. We have lost the simple way we show respect for one another, to say thank you, to signal agreement. Our elbows will never be up to the job,” Audrey Jessen of Florida tells the Times. In the same vein, the newspaper reports, hugging grandma, hugging your brother, going out on date and kissing, and the joy of hanging out in groups are all atop people’s post-COVID to-do lists.

Ditto for “getting out of the house,” the Times adds.

At The Conversation blog, there’s optimism that the pre-COVID decline in cooking at home will continue to be reversed after the pandemic.

“Our survey showed a rise in home cooking from scratch during lockdown. Both home cooking and confidence in cooking have been linked to better diet quality, and practising cooking increases confidence,” the blog says. The folks at The Conversation believe this COVID-induced trend won’t fade away when the pandemic does.

Neither, reports Forbes , will “virtual collaboration” in the workplace, a.k.a. teamwork via the Interweb. It should also continue to be a way to stay in touch with people post-pandemic, the magazine contends.

“Millions of Americans stayed home for Thanksgiving, and their virtual parties weren’t terrible,” says online collaboration expert Adam Riggs in the Forbes piece. “With millions of remote workers connecting virtually, Americans have seen how video conferencing technology has improved over time, which has also impacted how we virtually network,” he states in the article.

Riggs predicts that since the pandemic will continue for quite a while, the use of videoconferencing and networking apps will continue and will ultimately remain a tool in the communications arsenal when the COVID all-clear signal is finally given.

Many are counting the days until outdoor events, like musical festivals or sporting events, will again be able to be held in front of massive crowds.

The Independent quotes U.K. festival organizer Sacha Lord as saying “if we have another year like 2020, we’ve got serious problems.” The music festival industry had its worst year ever last year, the article notes.

Let’s see if we can hear the common theme in all of this. Yes, we want to go back to how things were, but also, some of the new ways we were forced to do things may survive into the When It’s Over era. For instance, it’s said that thanks to more handwashing, sanitizer use, and mask-wearing than ever before, our flu season was one of the mildest on record.

So let’s conclude that the light at the end of the pandemic tunnel will be a brighter, different one than the dark days of the current winter. Better days ahead, as they say.

Many of us have little bits of retirement savings here and there, scattered in different pockets from our time at different jobs. If you’re a member of the Saskatchewan Pension Plan, did you know that you can often transfer your benefits from other registered or unlocked plans to SPP? Up to $10,000 a year can currently be moved into your SPP account from other plans – that way, you can have all your retirement income coming from one source! Check out this and other SPP features in the SPP Membership Guide.

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