The worry over not saving enough for retirement has been found to have a negative impact on people’s mental health, with 40 per cent saying their health has suffered because of these financial concerns.
Research from Scottish Widows has found that one in six of us in fact have suffered mental health concerns because of financial worries. Issues raised included having an impact on personal relationships, not sleeping properly and feeling stressed just thinking about finances in retirement.
Scientific lead on the project Jo Hemmings said: “Denial of a situation that feels too distant in the future can create a false sense of security that prevents people taking action to resolve it. This is certainly true of retirement planning. The purpose of putting money away for a distant older life can feel too abstract and unreal in younger life and can therefore be ignored.”
And retirement expert at Scottish Widows David Holton said what is clear is that when people find they have to think about the reality of retiring, they recognise the need to prepare more and are willing to put more to one side.
There are several advantages to saving into a pension for retirement, including that regular contributions are invested properly so they can grow throughout your career and provide you with an income once you retire. Savings can grow more rapidly than they might do otherwise – and if you put money into a personal pension scheme you’ll find it qualifies for tax relief.
What this means is that some of the money that would have gone straight to the government in the form of tax will go into your pension pot instead.
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