Anxiety, depression can diminish retirement savings
Psychological distress can take a toll on more than just health. It can also significantly damage nest eggs, according to a new study by a Cornell financial economist and her co-author.
Mental health problems can have a large negative effect on retirement savings, the study found. Three factors make the research even more meaningful, the authors say: People increasingly are living longer, dealing with more psychological distress, and shouldering the burden of saving for retirement without the help of employers.
The study, published Aug. 29 in Health Economics, found people with anxiety and depression are nearly 25 percent less likely to have a retirement savings account. Their retirement savings as a share of their overall financial assets is up to 67 percent lower than those without psychological distress. And psychologically distressed married couples have retirement account values that are 20 to 28 percent lower. On average, that translates to between $15,000 and $42,000 less held in retirement savings for married couples.
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