10 October 2025
This World Mental Health Day, Quilter is highlighting the growing link between financial anxiety and mental health in retirement—and encouraging people to take proactive steps to regain control of their money and wellbeing.
New research* from Quilter, 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.
Ian Futcher, financial planner at Quilter, says that planning ahead and seeking advice can help break this cycle:
“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.”
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.”
Quilter’s research shows that retirees who received financial advice were significantly more likely to feel confident and satisfied with their retirement plans.
Futcher recommends retirees and those approaching retirement take practical steps:
Plan early
“It’s vital to understand your future spending needs, from essentials to luxuries. Having a plan is key. A detailed financial plan can provide peace of mind and make the transition to retirement much easier.
Get advice
“Professional financial planning can help you build a realistic, sustainable retirement strategy. The support of a financial planner can be invaluable, as they will use tools such as cash flow modelling to help determine how much you will need, whether your retirement savings will be enough, and how you can adjust your plans to make them achievable.”
“A financial adviser will take you through everything you need to consider, and while the earlier you start to plan, the better your outcomes are likely to be, it’s never too late to have that conversation.”
Review regularly
“It is important to make the most of your retirement, while also ensuring you utilise your pension savings sustainably to make sure they last. With so many variables outside of our control, like our health, the economy and financial climate, regular reviews of your spending plans and adjusting them as and when your circumstances change will ensure they are realistic and sustainable and will help you maintain that peace of mind.”
Consider phasing
“A gradual transition into retirement can support both financial resilience and emotional wellbeing. 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.”
“Money worries can feel isolating, but support is available,” Futcher adds. “Talking about your finances, whether with a trusted adviser or free services like MoneyHelper, can make a real difference.”
