Last week, new government data revealed that the number of people over the age of 65 is set to continue growing to almost a quarter of the population in 20 years time. Now, a new report from AXA, the financial protection provider, warns that today’s pensioners are being hit by escalating money worries that severely affect mental and physical health, with the worse afflicted suffering from ‘Money Sickness Syndrome’.

The report suggests that the while nation as a whole is suffering the health fallout of worrying about how to cope with the cost of living, everyday bills and debt, the link between wallet and health is no clearer than among pensioners.

It shows that some nine million pensioners in the UK are enduring the harsh effects of financial worries in their later years as they face symptoms of finance-related stress including anxiety (43%), lack of concentration (22%), insomnia (24%) and feeling depressed (21%). And as the government plan to phase out the default retirement age of 65, more pensioners may be forced to carry on working in fear of developing these symptoms.

In fact, the stress caused by money concerns has reached epidemic proportions across all sectors of the nation, with an estimated 42 million adults of all ages suffering from the syndrome. This is double the number of sufferers of four years ago, when the syndrome was first identified by GP and mental health expert Dr Roger Henderson.

In this latest report, pensioners emerged as among the worst affected, with three-quarters admitting to feeling stressed about their finances – particularly about the cost of living – over the last 12 months and well over half saying their stress had worsened in that time.

About 60% of pensioners blamed the high cost of living on their woes, compared to just 40 per cent of high-level managers and around 50% of manual workers. Pensioners also believe cost of living will remain the key factor driving their money worries over the next 12 months.

Pensioners are also the most concerned of all groups about their situation deteriorating over the next year with 53 per cent expect it to worsen compared to 36 per cent of top managers. This is perhaps not surprising as the government move to link pensions with the less valuable CPI rather than RPI, leaving pensioners facing even more cuts in their pocket in 2011.

However, pensioners are also among the least likely to have taken any practical action to get out of their financial fix. While 36% of pensioners have taken some practical steps to take control of their finances, the worrying aspect is that just over a third of pensioners have done nothing at all to help deal with their stress. The report shows that just 5% of pensioners sought the help of an independent financial adviser, while about 1.5% visited a debt counsellor. About 5% spoke to a doctor and 3% have taken prescription drugs to help with their stress. The reports also showed that 13% turned to food and 13% to drink for consolation.

Eugene Farrell, Head of Psychological Health and Wellbeing at AXA said:

“Pensioners today have a lot to contend with. And while it’s no surprise to find money worries are a concern for them, it is deeply worrying that it is affecting their health in such a way. As an aging population, such financial and health issues are a major concern for us as nation and the consequences are likely to only get worse in the years to come. Central to dealing with Money Sickness Syndrome is to have a plan of action that not only reduces the burden of debt but in doing so helps to reduce the physical and psychological symptoms.”

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