By Charlotte Morris
New analysis conducted by Gambling Research Glasgow at the University of Glasgow, on behalf of PensionBee, reveals that almost one in three adults over the age of 65 gamble beyond the lottery.
For example, this week bookmakers are offering odds on the outcome of the Vatican Conclave which will decide which of the College of Cardinals will be elected to succeed the late Pope Francis.
And some commentators are talking in terms of “runners and riders” when referring to the participants in the Conclave.
The study highlights that gambling rates are most prevalent among those near or at retirement age (age 55 to 64), but over 65s tend to gamble more frequently, with over half reporting weekly participation in activities such as sports betting, bingo and online casino games.
The research finds that 2% of adults age 55 and over – the age at which individuals can currently first access their personal pension – experience some level of gambling risk, according to the Problem Gambling Severity Index.
This translates to approximately 360,000 people across the UK, but despite this, gambling harms among retirees remain largely overlooked, with most focus placed on younger demographics.
Despite these risks, gambling in retirement remains an overlooked issue. Retirement can be a significant period of transition, bringing financial, lifestyle and emotional changes that may increase vulnerability to gambling harms.
Key risk factors include:
- Lower incomes Financial insecurity in later life can increase susceptibility to gambling in the hopes of financial gain.
- Living in deprived areas Higher levels of gambling-related harm have been associated with economically disadvantaged communities.
- Escapism and boredom The psychological adjustment to retirement may drive gambling as a coping mechanism. Gambling for escapism or to alleviate negative emotions has been linked to riskier gambling behaviours.
- Providing financial support to others Some retirees may find themselves providing financial support to loved ones experiencing gambling related harm, which can create financial strain and disrupt long-term financial planning.
- Pension lump sum risks The accessibility of pension lump sums may contribute to higher gambling harm risk among retirees and their families.
The new research opens up the opportunity for financial services firms to collaborate and establish industry practices to address common concerns around customers who have been impacted by gambling.
For example, a simple screening question – aligned with recent guidance from the National Institute for Health and Care Excellence (NICE) – could be introduced when individuals first access their pension. This could involve asking whether their own or someone else’s gambling has caused them concern.
The gambling harm screening could fall under the ‘Consumer Support’ outcome of the Consumer Duty.
Firms could also consider providing clear warnings, signposting to the National Gambling Helpline, and offering educational resources on financial wellbeing.
While direct intervention may not always be appropriate, ensuring that customers can easily access relevant guidance could be a valuable step in reducing potential harm.
Providers implementing such screening measures could also offer:
- Optional self-exclusion tools that allow customers to place restrictions on their accounts, such as blocking lump sum withdrawals or setting cooling-off periods for major financial decisions should they wish to do so.
- Strong safeguarding policies such as clear protocols for responding to disclosures and referral pathways to specialist support services such as the National Gambling Helpline, to ensure customers receive appropriate interventions.
- Staff training on gambling-related harm to help staff recognise signs of gambling-related financial distress, as well as appropriate signposting to support services.
- Fraud prevention policies to safeguard vulnerable individuals from financial exploitation linked to gambling addiction.
- Continuous monitoring and improvement of support measures to ensure they are effective.
Lisa Picardo, Chief Business Officer UK of PensionBee, commented: “Gambling harms are often associated with younger people, but this research brings attention to the issue faced by retirees, particularly as they navigate major financial and lifestyle changes.
“Screening questions and accessible support pathways are measures that could play a role in raising awareness of gambling-related challenges. By exploring these approaches, the industry may be able to better support individuals in making informed financial decisions and improve their financial wellbeing in later life.”
Dr Blair Biggar, pictured left, Lecturer and Research Associate at the University of Glasgow, commented: “While we often discuss how major life transitions, such as leaving home or starting work, can influence gambling behaviour, retirement is another key moment of change that has been largely overlooked.
“As individuals adapt to changing financial situations and lifestyle transitions, some may engage in gambling for various reasons, such as maintaining routine amid boredom or coping with the adjustments of retirement.
“This study underscores the importance of understanding these risks and implementing safeguards to support older adults.”
Methodology and data
This research, conducted by Gambling Research Glasgow on behalf of PensionBee, combines secondary data analysis and in-depth interviews to explore gambling behaviours and potential harms among retirees and those approaching retirement.
The secondary data analysis draws on combined, nationally representative data from the Health Surveys for England and Scotland (2012–2018). The research focuses on three key groups: individuals aged 55–64 currently drawing a pension income, those in the same age group not yet drawing a pension income, and individuals aged 65 and over.
As only 5% of those aged 65 and over were not in receipt of pension payments, they were analysed as a single group. It should be noted that there are some limitations to the data. In some cases, the data is over 10 years old and gambling revenues have increased significantly during this period. As a result, the estimates of harms within these surveys may be considered conservative.
Gambling Research Glasgow is a collective of researchers based at the University of Glasgow who share a common interest in the social impacts of gambling, particularly its effects on vulnerable groups, and on the cultural and political context of the expansion of commercial gambling.
A major attraction for gamblers is horse racing such as this one at Kelso in the Scottish Borders. Picture by Bill Heaney