Whether you are approaching or have entered retirement, it’s only natural that your finances will be among your top priorities. After all, you likely worked most of your life hoping to get to the point where you can e🏅njoy the results of your labors.

But everyone doesn’t retire with the same income. While some people have multiple revenue streams to prepare for retirement, such as a 401(k), 澳洲幸运5开奖号码历史查询:annuities, IRAs, and stocks, others are heavily banking on their 澳洲幸运5开奖号码历史查询:Social Security benefits or pensions to survive. 

Feeling that you’re not financially prepared to retire or you’re struggling to get by during retirement can cause anxiety. And when you don’t have any guidance on how to take your next financial steps, it can create stress. Here's what can help, and why it's so important to 澳洲幸运5开奖号码历史查询:manage this type of stress in particular

The Link Between Finances and Mental Health

What is Financial Stress?

澳洲幸运5开奖号码历史查询:Financial stress is a condition that arises when your current income is inadequate to sustain your financial responsibilities comfortably. For example, a retiree relying on a fixed income and 澳洲幸运5开奖号码历史查询:living paycheck to paycheck may feel little to no optimism that their finances♎ will improve soon. 

There can be multiple causes for this type of s𓂃tr🐼ess, including:

• Accumulating financial debt. This can stem from medical bills, student loans, auto loans, credit cards, or other bills that may have been sent into collections. 
• Losing your job. You may be struggling to cover your expenses as you attempt to get your finances back on track. 
• Improper money management. It can be stressful when you have enough income to save money and live more comfortably, but because you aren’t tracking your expenses, you are unaware of where your money is going.
  

How Many Americans Suffer From Financial 🥀Stress?

Many people are feeling the pressure to keep up with everyday expenses. According to a recent survey by Equitable, 80% of Americans, regardless of their income level, are worried about the affordability of everyday living costs.

Individuals who haven’t adequately prepared their finances before retirement have good reason to be concerned. According to a 2024 study from the Morningstar Center for Retirement & Policy Studies, almost half of American households (45%) that decide to retire at age 65 will run short of money during retirement. The study found that participating in a 401(k) plan or other defined contribution plans can help prevent shortfalls.

Effects of Financial Stress on Your Health

When you’re experiencing ongoing financial stress, it can negatively impact your mental and physica🎃l health. Your frustration and negativity ab𒊎out your finances can affect not only you but also your relationships with others.

A 2024 report from the TIAA Institute found that having a lot of debt was often associated with anxiety, depression, and anger. It also noted that continuing financial problems may contribute to feelings of hopelessness and despair.

“Financial health and mental well-being are tied in many ways,” says , a certified financial planner (CFP) in Jacksonville, Florida. “Not hav🅷ing good financial health can cause stress, anxiety, and depression."

Strategies for Managing Financial Stress

1. Create a Budget

The first step to worrying less about something is learning as much as you can about it, and with money, that can look like building a budget to know where you money is coming in, and where it's going out.

Start my analyzing your expenses. Review credit card bills and bank statements for every transaction you recently made and categorize them according to needs (mortgage, food, utilities, and the like) and wants (entertainment, gym memberships, etc.). Check these against your net income, gleaned by looking through your Social Security, 401(k), IRA, or pension a𒊎ccou𒉰nts.

When considering how to divvy up your spending, you might want to adopt the 50-30-20 rule, which states that 50% o📖f your money should go toward your needs, 30% toward your wants, and 20% toward savings.

For help in the budgeting process, consider using an app like Good Budget, PocketGuard, or Honeydue (if you have a partner/spouse); all have a free version. Some apps are geared to tracking expenses, while others let you plan how every dollar is spent.

2. Look for Federal and State Benefits Programs To Boost Inꦿcome

According to a white paper from the National Council on Aging (NCOA), over 2,500 benefits programs nationwide are underutilized by older adults because they either don’t know about them or don’t know how to use them. Programs are available that can help cover the costs of everyday needs, including healthcare premiums and copays, food, utilities, and more.

Examples include the 澳洲幸运5开奖号码历史查询:Medicare Part D Low-Income Subsidy, which reduces out-of-pocket expenses for prescription drugs, co-payments, and deductibles for eligible people, and the Low-Income Home Energy Assistance Program (LIHEAP), which can help with home heating and cooling costs. Check with your local or state Office for the Aging or the Eldercare Directory for resources.

3. Build an Emergency Fund

The NCOA white paper notes that “most older Americans continue to lack the resources that would allow them to weather a ‘financial shock’ such as a significant long-term care need, health issue, or loss of income due to divorce or widowhood.” Creating an 澳洲幸运5开奖号码历史查询:emergency fund to cover such expenses can help provide a cush🌠ion.

Retirees should aim to set aside three to six months of income, according to J.P. Morgan’s 2025 Guide to Retirement. To 澳洲幸运5开奖号码历史查询:reach that goal, you may need to take on part-time work or increase your savings—one way to do this is to set up an automatic transfer of funds after you receive your paycheck, or monthly Social Security payment if you are already retired.

4. Seek Out a Financial Therapist

If stress over your finances is getting the better of you, consider turning to a professional who 澳洲幸运5开奖号码历史查询:helps clients gain a different perspective on how they ana⛦lyze money and how their thought processﷺes affect their mental health.

“Life is a series of transitions, and retirement is one of the most profound. It’s completely natural to feel a mix of excitement, uncertainty, and even stress,” said certified 澳洲幸运5开奖号码历史查询:financial therapist . “After years of working, structuring your days, and building financial security, stepping into this new pha💧se can feel both freeing and daunting. But at the heart of a fulfilling retirement is the balance between financial security and emotional well-being, between planning for the future and enjoying the present.”

Some of the new stresses retirees experience are related to loss, according to , 𓆏based in Needham, Massachusetts. These include identity loss as a working professional, seeing funds go out instead of coming in, and losing workplace social groups. Other stresses are related to new things—hobbies, travel plans, and more.

“Encountering both in tandem can lead to confusion,” Agnew says. “However, 澳洲幸运5开奖号码历史查询:mindfulness techniques such as journaling and meditation can help.”

5. Try to Settle Your Debt

If you’re saddled with debt, you may be able to settle it at a lower cost or have it forgiven altogether, according to the Consumer Financial Protection Bureau (CFPB). Medical bills, for example, can be forgiven if you can dispute the charge with documentation. 

You can also try to 澳洲幸运5开奖号码历史查询:negotiate with a care provider to lower the costs so the remaining balance is more affordable. The same can apply 🅠to other bills such as electricit♒y, water, gas, phone, credit cards, and possibly money owed on an apartment you rented previously. By negotiating, you may have the chance to lower your debt to half the amount you would have paid if you didn’t do your due diligence.

More Advice From Financial Therapists

McCಞlanahan says one way to reduce anxiety before you retire is to educate yourself about your money and the markets. “Learn tꦫhe basics about how you are investing so when the markets go up and down, you understand why your retirement plans are fluctuating,” she says. “Having a good understanding of what you are doing goes a long way toward reducing stress.”

However, if you recently retired and are already financially stressed, McClanahan suggests taking a step back an🦩d seeking professional advice. “It is good to work with a financial planner to help you craft an investment policy that you will stick to when the markets go up and down,”🍨 she says.

Another tactic is calculating the cost when you have a big decision to make. “For example, we have many clients who come to us insisting that they have to work until 65 because that’s when Medicare starts,” says , with Macke Financial Advisory Group in Fort Myers, Flo🦹rida. “By showing them th🍨e cost of private healthcare in a financial plan projection, they can see the effect of an earlier retirement on their net worth several years in the future.

“This gives them the independence to decide for themselves if they want to stay in the workforce or﷽ not. For some, an extra year of spending time with grandchildren or traveling the globe is worth the $14,000/year for private health insurance before Medicare.”

The Bottom Line

Financial stress is not uncommon and isn’t something to feel ashamed or embarrassed about. It impacts people across all ages and tax brackets, mentally and physically. When you need guidance for your next steps, seeking a financial thera𝓡pist or✱ a financial advisor can go a long way in relieving your anxieties. Professionals can help you analyze your situation and 澳洲幸🍸运5开奖号码历史查询:take th🌱e right approach in retirement while maintaining your mental and physical health.