Almost a quarter of men over 50 have taken time out of work due to their mental health which could have an impact on their pension pot.
According to research from Skipton Building Society, the average pension pot for a man over 50 is £63,222, but taking time out of work potentially means a break in pension contributions.
The research, which surveyed 2,000 UK adults, found that concern about retirement exists among its respondents, with 44 per cent now saying they’re worried they won’t be able to afford the retirement they dream of.
Helen McGinty, head of financial advice distribution at Skipton Building Society, said: “It may come as a surprise that some men may be facing a less comfortable retirement due to their mental health.
“It’s great to see men taking the time to focus on themselves and their wellbeing, so it’s important to make sure they are given the support they need to make up any pension shortfalls later down the line.
“We know there are moments in life that are just unpredictable. That’s why I can’t stress enough that it is never too early to think ahead and get planning for that retirement you’re dreaming of.”
Other factors
On top of expected career breaks, the research found that mental health was impacting men's pensions in other areas, as more than half of men polled said they feel like the cost-of-living is outpacing how investments are performing.
Meanwhile, three in 10 said they’d expected to be earning more at this point in their career.
But ultimately, 27 per cent of men didn’t start seriously thinking about pensions and retirement until later in life.
McGinty added: “The later you leave it, the harder it will be to save for a plentiful pension pot.
“It’s better to get those savings working harder earlier, so if you do find yourself needing to take a break or reduce your contributions, your pension won’t be taking a massive hit.”
Additional data
Furthermore, data from Skipton’s charity, Mental Health UK, suggested that one in eight men will struggle with a mental health challenge.
But the building society cautioned that this stat could be even higher with the charity reporting that men don’t often report their experiences.
tom.dunstan@ft.com
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