Abacus Daily Debt News

Retiring ‘can result in immediate financial strain’

Retirees may face debt worries during the first five years after finishing work, new research has suggested.

Carried out by LV=, a survey found millions of Britons face monetary strain during the ‘golden years’ of their retirement.

It showed 17 per cent are hit by a sudden requirement to support family members financially.

More than one-in-three (34 per cent) celebrated the birth of a new grandchild in this time frame, while one-quarter moved house.

Almost a quarter (24 per cent) of those who ended their employment stated their health had worsened during the half-decade following the event.

Matt Trot, head of annuities at the organisation, noted: “Any unexpected strain on their finances in the early years of retirement could have a significant knock-on effect further down the line.”

A recent study by Scottish Widows found funding a comfortable retirement is perceived by many over-50s as the biggest obstacle to after-work living.

By James Francis