Warning over betting boom as retirees use pensions to gamble

Retirees should be quizzed about their gambling habits when they first access their pension pots, experts say.

The call comes as a new report reveals that almost one in three adults over the age of 65 bets beyond the lottery.

Analysis by Glasgow University’s gambling research unit also shows some adults aged 55 – the age at which people can first access their personal pension – and over experience some level of gambling risk.

The study also found that over-65s tended to gamble even more frequently, with more than half reporting weekly participation in activities such as sports betting, bingo and online casino games.

The researchers suggest that older people should now be asked whether their own or someone else’s gambling has caused them concern when accessing their pensions.

Research associate Dr Blair Biggar said: “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.”

The report opens the door for financial services firms to establish industry practices to address common concerns around customers affected by gambling, Biggar said.

For example, a simple screening question could be introduced when individuals first access their pension funds.

“This could involve asking whether their own or someone else’s gambling has caused them concern,” he said.

Firms could also consider ­providing clear warnings and signposting to the National Gambling Helpline, and offering educational resources on financial wellbeing, the study concludes.

Lisa Picardo, chief business officer UK of pension consolidation company PensionBee, said: “Gambling harms are often associated with younger people, but this research brings attention to the issue faced by retirees.

“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.”

Figures released recently by the Gambling Commission found a staggering 39% of those aged 65-74 surveyed said they had gambled online in the past four weeks – a 124% increase since 2019.

Experts blame part of the rise on the Covid lockdown measures in which betting shops closed and events such as horse racing, cricket and football faced restrictions. During this time online gambling boomed with operators heavily marketing their platforms.

Gambling awareness organisation GamCare said one of the biggest challenges with experiencing gambling issues at an older age is the financial difficulties people may experience and the more limited opportunities to pay back debt at this stage of life.

Chief executive Victoria Corbishley told The Sunday Post: “Gambling addiction is widely known as the ‘hidden addiction’ and detecting when a problem is occurring can be difficult. This is why it is so important that more organisations offer opportunities to screen for gambling harm and provide opportunities to prevent problems from occurring where they can.”

© Supplied by GamCare

However, privacy campaigners say questioning pensioners about their gambling habits is a step too far.

James Baker of the Open Rights Group said asking people who are about to retire if they gamble is not only intrusive but could be harmful, if this information is then shared and later used to establish their creditworthiness or deny them credit.

“In addition, people who have a problem with gambling actually need protection against commercial tracking and data sharing that may allow gambling companies or others to identify their vulnerability,” he said.

“The best way to protect these people is to reduce the amount of information that exists about them and that could be later weaponised against them.”

Anyone struggling with their own gambling or someone else’s can contact GamCare’s National Gambling Helpline on 0808 8020 133.