Stocks to keep an eye on if you feel retirement nervousness

Highlights

• More than half of UK people are fearful about retiring, suggests recent survey.
• People are feeling that they have not been saving enough in their pension pots to maintain a decent standard of living in the future.
• Retirement nervousness has become a major concern among adults, pushing some of them to even look for medical assistance.

Amid the deteriorating economic environment and the escalating cost of living catastrophe, people aged above 40 have already started feeling more and more anxious about their retirement. According to the results of a recent survey, which covered about thousand people aged over 40 living in the UK across the month of July, more than half (54%) are fearful about retiring. Asset supervisor abrdn has unveiled that six out of 10 people (61%), who are aged between 40 and 44 years, are worried about retiring, even though they still have a long way to go and an ample amount of time to work and save more.

As inflationary pressures have been rising and the current economic environment has been impacting the investment arena as well, people are feeling that they have not been saving enough in their pension pots to tackle the future inflation while maintaining a decent standard of living when they don’t have a job. Some of the respondents said that they were feeling quite ashamed of themselves due to their lack of retirement planning or due to searching for recommendation. In addition to financial concerns, some people were concerned that they would be regarded as “outdated” and would lose their identity after they retire.

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According to renowned psychologist Dr Linda Papadopoulos, retirement nervousness is a major concern among adults, pushing some of them to even look for medical assistance. Retirement nervousness is basically a fearful emotion that people deal with in regards to their retirement prospects. Different people react different to this stress. Some people may disregard their retirement stress, which may cause further problems in the future, while other panic, feel overwhelmed, and lose sleep over it. The survey suggested that one out of six (16%) people who worry about retirement are unable to sleep properly.

The survey also pointed out that the personal life and relationships of 13% of people were affected due to the stress, while 14% of the people had their work life impacted due to it. The current economic environment is quite unstable, thus driving people towards more stress and worries about their future. The key to tackle retirement nervousness is to acknowledge the concerns and start planning early.

Making risky investments may appear to be thrilling at a young age, but as people start aging, a portfolio which is dominated by risky assets may possibly lead to wiping out of all their hard-earned savings. During these times of market instability, which may continue in the near future, investors can explore dividend stocks which would offer them a passive income stream and help them in beating the rising inflationary pressures. Let’s look at 10 dividend-paying stocks suggested by Kalkine Media® which investors facing retirement nervousness may keep an eye on.

Diversified Energy Company plc (LON: DEC)

The shares of the oil and gas producing business based in the US, Diversified Energy Company plc, surged by 0.22% at 11:35 AM (GMT+1) on Wednesday, while trading at GBX 137.10. The FTSE 250 constituent is offering investors a whopping annual dividend yield of 10.3%, but along with a negative EPS (earnings per share) of -0.03. Holding a market cap of £1,164.11m as of 17 August, the company is providing its shareholders with positive returns of 29.66% and 31.40% on one-year and YTD (year-to-date) basis, respectively.

M&G plc (LON: MNG)

The shares of the globally operating firm engaged in investment management, M&G plc, plunged by 1.80% at 11:48 AM (GMT+1) on Wednesday, while trading at GBX 213.30. The FTSE 100 constituent is offering investors an annual dividend yield of 8.5%, along with a positive EPS of 0.44. Holding a market cap of £5,495.36m as of 17 August, the company is providing its shareholders with positive returns of 6.77% on YTD basis, however its one-year return stands in the negative zone at -4.61%.

Imperial Brands plc (LON: IMB)

The shares of the UK-based tobacco manufacturing giant, Imperial Brands plc, rallied by 0.65% at 11:51 AM (GMT+1) on Wednesday, while trading at GBX 1,915.00. The FTSE 100 constituent is offering investors an annual dividend yield of 7.3%, along with a positive EPS of 3.00. Holding a market cap of £18,086.27m as of 17 August, the company is providing its shareholders with positive returns of 20.46% and 18.20% on one-year and YTD basis, respectively.

Phoenix Group Holdings (LON: PHNX)

The shares of the leading savings and retirement business, Phoenix Group Holdings, dropped by 1.51% at 11:56 AM (GMT+1) on Wednesday, while trading at GBX 667.20. The FTSE 100 constituent is offering investors an annual dividend yield of 7.3%, along with a positive EPS of 0.09. Holding a market cap of £6,774.24m as of 17 August, the company is providing its shareholders with positive returns of 2.20% on YTD basis, however its one-year return stands in the negative zone at -0.83%.

Chesnara Plc (LON: CSN)

The shares of the Europe based life and pensions consolidator, Chesnara Plc, plummeted by 1.75% at 12:07 PM (GMT+1) on Wednesday, while trading at GBX 308.50. The company is offering investors an annual dividend yield of 7.2%, along with a positive EPS of 0.53. Holding a market cap of £471.49m as of 17 August, the company is providing its shareholders with positive returns of 10.57% and 8.25% on one-year and YTD basis, respectively.

NewRiver REIT Plc (LON: NRR)

The shares of the UK-based real estate investing company, NewRiver REIT Plc, soared by 1.16% at 12:12 PM (GMT+1) on Wednesday, while trading at GBX 87.10. Holding a market cap of £265.82m as of 17 August, the company is providing its shareholders with positive returns of 4.31% on one-year basis, however its YTD return stands in the negative zone at -1.14%.

BlackRock World Mining Trust plc (LON: BRWM)

The shares of the UK-based investor focused on mining and metals, BlackRock World Mining Trust plc, fell by 0.64% at 12:24 PM (GMT+1) on Wednesday, while trading at GBX 620.00. The FTSE 250 constituent is offering investors an annual dividend yield of 6.8%, along with a positive EPS of 1.06. Holding a market cap of £1,177.82m as of 17 August, the company is providing its shareholders with positive returns of 2.28% and 5.0o6% on one-year and YTD basis, respectively.

Legal & General Group plc (LON: LGEN)

The shares of the financial services provider and asset manager, Legal & General Group plc, tumbled by 0.70% at 12:28 PM (GMT+1) on Wednesday, while trading at GBX 281.90. The FTSE 100 constituent is offering investors an annual dividend yield of 6.6%, along with a positive EPS of 0.34. Holding a market cap of £16,956.53m as of 17 August, the company is providing its shareholders with positive returns of 4.18% on one-year basis, however its YTD return stands in the negative zone at -5.41%.

Bank of Georgia Group plc (LON: BGEO)

The shares of the leading universal bank, Bank of Georgia Group plc, rallied by 01.46% at 12:39 PM (GMT+1) on Wednesday, while trading at GBX 1,952.00. The FTSE 250 constituent is offering investors an annual dividend yield of 6.5%, along with a huge positive EPS of 15.22. Holding a market cap of £939.74m as of 17 August, the company is providing its shareholders with positive returns of 28.48% and 17.39% on one-year and YTD basis, respectively.