Three in five (58%) UK adults over 40 have said that they are anxious about the prospect of retiring, with one in five (20%) stating they are “very anxious”.

In new research by abrdn, the investment company found that this anxiety around retirement has increased in the past year, after standing at 54% in 2022.

Furthermore, the number of adults that said they are “very anxious” increased by 70% year-on-year, with 18% saying it is severe enough to keep them awake at night.

As a result, more than one in eight (13%) of those surveyed have delayed retirement or plan on doing so. Almost one in five (18%) of those aged 55 and over said that they were planning on delaying retirement or have done so.

The research found that both financial and emotional reasons were behind this growing trend, with more than two in five (43%) citing not having saved enough as the driving force behind their retirement anxiety.

Nearly two in five (39%) are worried about the rising cost of living, with 24% saying that they are worried about how the current economy will impact their investments and pension.

Despite the concerns, 41% of those surveyed said that they had done nothing to prepare for retirement.

Financial planning expert at abrdn, Shona Lowe, said: “The prospect of retiring can be a daunting one, whatever your age, particularly against a backdrop of rising interest rates, high inflation levels and an ongoing cost of living crisis. It is completely normal to experience anxiety about retirement; you’re gearing up for a big change that has a number of variables and factors to take into consideration. But it is concerning to see an increase in the number of people that are experiencing retirement anxiety in our latest research and to find that for some, the level of that anxiety is affecting their ability to sleep and their relationships.

“While many will be thinking about the financial aspects of retirement, others will be worried about the lifestyle and emotional impacts. To ease retirement anxiety, there are a number of steps you can take, including talking to a loved one about your plans, putting a robust plan in place or even continuing to work flexibly in retirement to ease financial concerns and give you a sense of security.

“There are also benefits for many in seeking advice from a professional adviser in order to get a clearer understanding of your financial situation and how to best prepare for this important life stage.”

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